By BERNAMA / Graphic By TMR
The Federation of Malaysian Manufacturers (FMM) has urged the government to share the increase in minimum wage with employers.
It suggested that the current minimum wage rate should not increase immediately to RM1,500, but spread over the five-year period with the first increase in 2019.
“However, the intention to standardise the minimum wage rates in Sabah and Sarawak with Peninsular Malaysia should be reviewed as the two states would not be able to sustain the significant increase,” it said in a statement last Friday.
Concurrently, the allowable monthly housing deduction for foreign worker should be increased from RM50 to RM150, it added.
The FMM has also proposed to the government to implement a multi-tiered (marketbased) levy mechanism, including ploughing back levy collected, to support the industry’s automation and adoption of Industry 4.0 technologies, but in the meantime, the levy burden should revert back to foreign workers.
Additionally, the definition of minimum wage should be reviewed as total remuneration, that is, basic wage and all fixed cash payments and allowances are defined as wages under Section 2 of Employment Act 1955.
“Minimum wage increase must commensurate with productivity gains,” it added.