SHAH ALAM - The National Chambers of Commerce and Industry of Malaysia (NCCIM) has warned the sudden hike in minimum wages will cause prices to increase and the move may lead to inflation, further urging Putrajaya to delay the move and consult them on the matter.
Its President Datuk Low Kian Chuan said the business community was caught by surprise with an abrupt announcement of the increase of between 25 percent to 36 percent in minimum wage to RM1,500 per month from the current RM1,100-RM1,200.
"Pending more clarity of the details, it has caused adverse reactions and anxieties among many industries and employers as the timeline of implementation is too short for the employers to make preparation," he said in a statement.
Low said there has always been sufficient engagement and a timeline for the implementation of minimum wage.
"Our deep concern is that the increase in minimum wage comes at a time when businesses are facing substantial increases in business costs, experiencing worker shortages and cautious consumer spending.
"Imposing additional labour costs on businesses could force impacted business owners to raise prices and cause consumer inflation and reduce employment to preserve their business margin," he cautioned.
The knock-on effect of proposed minimum wage on other categories of workers will add to higher employment and operating costs.”
He added the business community needs breathing space to rebuild their business as they are still reeling from the economic and business shocks inflicted by the two years long of pandemic impact.
"Most businesses are not financially stable to implement the proposed new minimum wage as their cash flow and revenue are still on the mend and have not fully restored back to pre-pandemic level," he said.