More classification needed for minimum wage policy

KUALA LUMPUR: The Associated Chinese Chambers of Commerce & Industry of Malaysia (ACCCIM) is of view that the proposed minimum wage policy needs more detailed classification to match the different capabilities of SMEs.

Speaking to the media at the third ACCCIM SME conference, deputy treasurer CS Tang recommended that the focus be shifted to the total take-home income of workers, rather than a one-size-fits-all salary figure.

"Those companies that don't give incentives, they should follow one set of criteria; those that give salary and incentives should be given other criteria (to fulfill) otherwise it would be a problem for those carrying the cost," he said.

He also said that the policy should take into account the varying living cost in the regions and operational costs in industries.

From a survey done on SMEs, ACCCIM found that 47% of them oppose the blanket minimum wage policy. Of this, 40% are manufacturers.

Head of survey unit Koong Lin Loong said that the survey found those supporting the policy were young SMEs which have only been around for less than three years.

"Maybe because they have less workers and lower operational cost so the policy has less impact on them," he said.

He added that the proposed policy would be tough on companies with low-skilled workers but not a problem for those employing professionals as the salary scale in the latter already exceeds the proposed minimum wage.