PETALING JAYA, Selangor, Aug 26 (Bernama) -- The Malaysian Plastics Manufacturers Association (MPMA) believes there is no need for a further increase in the statutory minimum wage at this juncture, as Malaysia’s tight labour market is already creating natural upward pressure on wages. With unemployment at around 3%, employers are competing strongly for workers and making significant efforts to attract and retain employees. Market forces are therefore already contributing to wage growth, and this process should be allowed to continue rather than being replaced by a large across-the-board statutory increase.
 
MPMA considers the proposed RM3,100 minimum wage unrealistic and unnecessary under current conditions. A substantial increase would raise not only the wages of minimum-wage workers but also payroll costs across different employee levels as companies seek to maintain appropriate wage differentials. This comes at a time when manufacturers are already facing higher energy, logistics, freight, insurance and raw-material costs, as well as global supply-chain and geopolitical pressures.
 
For Malaysia, particularly in manufacturing, higher wages must be supported by higher productivity and value creation. Employers create the conditions for productivity through investment in technology, automation, digitalisation, skills and better processes - while employees convert these improvements into results. The resulting gains should benefit both companies and employees through sustainable, productivity-based wage progression.
 
MPMA is also concerned that a broad minimum wage increase could have unintended economic consequences. As Malaysia’s workforce includes a significant number of foreign workers, a substantial increase in wages could result in a greater portion of additional income being remitted overseas, potentially increasing the outflow of funds from the country rather than generating the full economic multiplier effect domestically. This should be considered alongside the impact on business costs, prices, competitiveness and investment.
 
The priority should therefore be to strengthen the ability of businesses to pay higher wages sustainably. Government should facilitate investment through stronger automation grants, tax incentives and skills-development support, while employers continue investing in productivity and employees participate in and benefit from the resulting gains.
 
MPMA believes higher wages should ultimately be the outcome of a more productive and higher-value Malaysian economy, rather than simply the result of repeatedly raising the statutory wage floor.


SOURCE: Malaysian Plastics Manufacturers Association (MPMA)

FOR MORE INFORMATION, PLEASE CONTACT:
Nama: Francis Valladares
Malaysian Plastics Manufacturers Association (MPMA)
Email: franv@mpma.org.my 
Tel: 03-78763027

--BERNAMA