PETALING JAYA: The implementation of the proposed new RM1,500 minimum wage will increase the cost of doing business and derail economic recovery, says the Malaysian Employers Federation (MEF).

       Its president Datuk Syed Hussain Syed Husman said the majority of Malaysian businesses, which were made up of micro, small and medium enterprises, was still reeling from the economic impact caused by Covid-19 and the recent floods.

       He said more effort should be directed towards business recovery in the private sector and in controlling the rising cost of products and services.

       “We must remember that the majority of Malaysian busi- nesses are in this group, making up 98.9%.

       “When we talk about wages and cost, we must think of their survival and sustainability,” he said in a statement yesterday.

       Syed Hussain said added pressure on the cost of business might force some businesses to cease operations.

       “The RM1,500 minimum wage will push up the cost of goods and services, and operation costs will definitely increase.

       “This is not the time to implement any increase in minimum wage,” he said.

       Syed Hussain added that any increase in minimum wage would benefit employees with wages that were lower than the proposed national minimum rate and the bulk of them would be the foreign workers.

       “The outflow of money will further increase,” he said.

       He added that employees with salaries above the minimum wage would also be discouraged should they not receive any salary adjustments.

       Currently, Malaysia’s minimum wage is RM1,200, which was raised from RM1,100 in February 2020.