With the Pakatan Rakyat (PR) manifesto to introduce a minimum wage of RM1,100 per month, Human Resources Minister Datuk Seri Dr S. Subramaniam assumed that it may just be another election promise, stating that it would be 'darn tough' in terms of implementation.
On a more serious note, Subramaniam pointed out the fact that with the proposed figures made by Pakatan Rakyat, it would only serve to dull Malaysia's competitiveness; thus placing it at a 'high risk' position. The proposed amount too would only lead to higher inflation and unemployment, and ultimately make the country seemingly dull to foreign investors.
Dr Subramaniam acknowledged the fact that Pakatan’s proposed minimum wage was based on a World Bank report ( made under the request of the Human Resources Ministry), which was the same used by the government when deciding on the minimum wage with proposed range of RM800 to RM1,200.
The higher the minimum wage, the greater the risk. The government took into account these factors in order to balance the issues' before setting RM900 as the minimum wage for private sector employees in Peninsular Malaysia and RM800 for those in Sabah and Sarawak. In Subramaniam's own word, even at the current rate, the small and medium enterprises (SMEs) are already ‘crying’.
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