KUCHING: The Associated Chinese Chambers of Commerce and Industry of Sarawak (ACCCIS) has appealed to the government to postpone any adjustment to the minimum wage system for at least two years.
This is to allow domestic businesses to have sufficient time to recover from the Covid-19 pandemic,” it said in a statement on Monday (Feb 7).
In stating this the ACCCIS said the proposal to raise the minimum wage to RM1,500 a month was too hasty and lacked in-depth consideration.
It pointed out that it is also not the right time to do so now as the Covid-19 pandemic is not over.
“The said proposal will exacerbate the devastating impacts of the pandemic on the small and medium sized enterprises (SMEs).
“Maintaining a good cash flow and reducing the operational cost are the two prerequisites to keep most businesses afloat.
“In order to cope with various uncertainties especially arising from the Covid-19 outbreak, businesses need to have a strong cash flow to cushion and overcome the impacts of Covid-19,” it stressed.
The ACCCIS suggested the government prioritise working closely with the business community and other stakeholders to fight Covid-19 and strengthen the economy so that businesses could stay afloat and workers could keep their jobs
“Otherwise, the hasty implementation of such revised minimum wage will kill off the surviving chance of many struggling businesses and will inevitably lead to massive layoffs, a significant reduction in employment opportunities and many families will lose their livelihoods.
“This in return will result in many unwanted social problems and domestic demand will also decline due to the inflationary pressures on the prices of goods and services and also ultimately economic recovery will be derailed.
