00:00An employer's group and a trade union have dismissed calls for the implementation of
00:06a state-based minimum wage, saying the policy would create numerous issues.
00:12Malaysian Employers' Federation President Syed Hussein Syed Husman said, while the proposal
00:16by the Federation of Malaysian Manufacturers appeared theoretically sound, its execution
00:21would be problematic.
00:23Syed Hussein said, a state-based minimum wage would create an uneven playing field, giving
00:28businesses in lower-wage states an unfair advantage over those with a higher baseline.
00:33He added that a non-uniform wage system would lead to wage disparities, causing worker migration
00:38and labor shortages in states with lower minimum wages.
00:42On January 31, FMM proposed that future minimum wage adjustments consider state-based or regional
00:48models to better reflect local economic realities, as the current RM1,700 uniform rate could
00:54strain businesses in less-developed areas.
00:57FMD Abdul Ghani of the Malaysian Trades Union Congress said implementing a state-based minimum
01:02wage could lead to wage suppression, with employers in lower-wage states keeping salaries
01:07stagnant under the pretext of unaffordability.
01:10He also said there was the risk of companies relocating to lower-wage states to reduce
01:14labor costs, leading to job losses in higher-wage states.
01:18Danish Rajareza, FMT News.
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