TAPAH: The minimum wage policy will allow the unemployed and undergraduates to get better pay, says Datuk Seri M. Saravanan(pic).
The Human Resources Minister said jobseekers would have options to get better salaries and need not work for minimum wage.
"If an offer is not attractive, job seekers have options to get better pay.
"They need not work for minimum wage. It is time to do it," he said in a press conference during a zakat presentation ceremony at Dewan Merdeka here on Friday (April 15).
"Let's see the bigger picture, there's no more employers' market.
"Today, anyone can drive a Grab and can get RM2,000, so why work for RM1,200 or RM1,500," he added.
Many business groups and associations felt that the timing to implement the policy was wrong as the economy was only starting to recover amid the Covid-19 pandemic, global inflation and ongoing Russia-Ukraine war.
Some were worried that the increase in wage would transfer the cost to consumers by increasing the price of goods while some may have to cut down on hiring workers.
The RM1,500 minimum wage policy was announced by Prime Minister Datuk Seri Ismail Sabri Yaakob in March and it would be implemented starting May 1.
The policy would involve private sector companies with a minimum of five workers, while small and micro companies were allowed to postpone the implementation as they might not have the financial capability to adopt the policy.
Farmers, hotels and hotel industry players and companies with fewer than five employees were exempted.
Saravanan said there were several industries or sectors that were agreeable to pay the minimum wage.
"Some industries like automobile, ports and the food and beverage agree to pay (the minimum wage).
"And if some industries were not doing well, why are they still asking for 500,000 foreign workers?
"(They) Cannot play hot and cold. If it's not good, then there's no need for so many workers," he said, adding that some plantations and manufacturers, like rubber and medicine, were doing extremely well.
He also said wages needed to be increased so people at the grassroots level could have the means to spend, thus improving the economy faster.
"I do understand some of the concerns and current needs.
"Data says that every two years, wages must increase," he said.
"The government is also working to create more job opportunities for the unemployed and undergraduates," he added.
On Umno's decision to nominate Datuk Seri Ismail Sabri Yaakob as its prime minister candidate for GE15, the MIC deputy president said MIC supported it.
"He can unite all, including the Opposition.
"The country's success depends on political stability and he can do it," he said.
"We see a leader who is accepted by all levels of the community.
"I believe he can bring the country to greater heights if given the opportunity," he added.