Was Bank Negara consulted over wage policy, say business leaders

 

Business leaders have questioned whether there were discussions about the impact of the new minimum wage.

KOTA KINABALU: Business leaders here have taken heart after a recent caution by Bank Negara Malaysia about the new minimum wage, and have questioned whether enough consultations had taken place in the government about the new policy.

Sabah Employers Association president Yap Cheen Boon said he was reassured by the stance of the central bank governor in acknowledging the need for a “comprehensive and equitable approach” to the wage increase.

“But it is also worrying because it demonstrates the incoherence of policy approach among government agencies,” he told FMT.

“Were there consultations on tackling the economic issues arising from the new minimum wage?” he said, calling for public and private stakeholders to be included at discussions.

The new minimum wage of RM1,500 to be enforced from May 1 marks a 25% increase from the previous rate of RM1,200 set in 2020.

However, Bank Negara governor Nor Shamsiah Mohd Yunus said on Wednesday that the policy should be implemented progressively to prevent disruptions to the economy. She said firms affected by the Covid-19 pandemic should be given time to adjust.

Malaysian Employers Federation chief Syed Hussain Syed Husman said not all companies had the same financial ability or capacity, and many have suffered from the Covid-19 lockdowns and monsoonal flooding.

SME Association of Malaysia secretary-general Chin Chee Seong said Shamsiah’s comments reflected the lack of communication between the different ministries.

“Most of the time, they don’t consult each other to make decisions,” he said.

Sabah SME Association president Foo Ngee Kee said Shamsiah’ remarks amounted to a slap in the face for the government as the central bank implied it was not consulted before the policy was announced by the prime minister. - FMT