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Focus more on upskilling workers instead of minimum wage: SME group | Scoop
Samenta has called on the government to focus more on upskilling workers instead of raising wages as the RM1,500 minimum wage is due for review this year. – Abdul Razak Latif/Scoop pic, March 15, 2024
News

Focus more on upskilling workers instead of minimum wage: SME group

This comes as current RM1,500 minimum wage is due for review by May

Main Author Image
Sairien Nafis
Updated
4:26 PM MYT

 

KUALA LUMPUR – With the RM1,500 minimum wage due for review this year, the Small and Medium Enterprises Association (Samenta) has urged the government to focus on upskilling workers instead of raising wages. 

The government can improve workers’ skills by attracting high-value industries which will provide higher-paying jobs, said Samenta president Datuk William Ng. 

There are also other tools, such as the proposed progressive wage model, that will align salary increments with productivity and skills. 

“This will be a win-win for businesses and employees…instead of giving in to the frequent demand for higher minimum wage,” he said in a statement today. 

The current minimum wage was set in 2022 and is due for a revision every two years, with the next review to be done by May 1. 

Ng said the minimum wage model was less effective in a post-pandemic economy, as the definitions of jobs, workplace, and even wages have changed. 

“In other words, the minimum wage system is an outdated solution to an outdated problem,” he said. 

He also said many SMEs were already paying workers above the minimum wage.  

“The Malaysian labour market is also highly efficient, and employers who underpay will see themselves out of business.” 

On the need for high-skilled workers, Ng said there were currently over 50,000 vacancies for engineers and technical staff in Penang and Kulim alone. These jobs were offering salaries between RM3,500 and RM6,000 monthly. – March 15, 2024

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