TAPAH: Both the unemployed and undergraduates stand a better chance of getting better pay with the minimum wage policy, says Datuk Seri M. Saravanan.
The Human Resources Minister said job seekers have options to get better pay and need not opt to take on jobs with minimal wages.
“If an offer is not attractive, job seekers have other options to get better pay.
“They need not work for minimum wage. It is time to do it (minimum wage policy),” he said in a press conference during a zakat presentation ceremony at Dewan Merdeka here yesterday.
“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 the timing to implement the policy was wrong as the economy was only just starting to recover amid the Covid-19 pandemic, global inflation and ongoing Russia-Ukraine war.
Some were worried that the increase in wages would transfer the cost to consumers by increasing prices 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 will be implemented starting May 1.
The policy will involve private sector companies with a minimum of five workers, while small and micro companies are allowed to postpone the implementation as they may not have the financial capability to adopt the policy.
Farmers, hotels and hotel industry players and companies with fewer than five employees are exempted.
Saravanan said there were several industries or sectors that were agreeable to the minimum wage.
“Some industries like automobile, ports and the food and beverage agree to pay (the minimum wage).
“And if some industries are not doing well, why still ask for 500,000 foreign workers?
“(They) Cannot play hot and cold. If 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 said wages need to increase so the people at the grassroots level can have the means to spend to improve 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,” he added.