Community leader urges Putrajaya to reconsider proposed minimum wage hike in Budget 2025

Kueh Aik Seng
Advertisement

By DayakDaily Team

KUCHING, Oct 21: Temenggong Kueh Aik Seng, a prominent Chinese community leader from Sri Aman Division, has called on the federal government to reconsider its proposal in Budget 2025 to increase the minimum wage from RM1,500 to RM1,700 starting Feb 1 next year.

In a statement today, he expressed concerns that the government’s move could place undue strain on small and medium enterprises (SMEs), particularly in rural areas.

Advertisement

Kueh also noted that the minimum wage had just been raised to RM1,500 in July 2023, and another increase so soon would challenge businesses, especially those with lower productivity and workloads, as is common in rural settings.

“Rural businesses generally have lower workloads and productivity, and maintaining the current basic wage is sufficient.

“Wages in the country should be determined based on the local cost of living and working conditions.

“A nationwide uniform wage may not be conducive to the survival and development of employers, especially those in rural and suburb regions,” he said.

Highlighting the vital role of SMEs in the national economy, Kueh urged Sarawak’s Members of Parliament (MPs), to address the concerns of their rural constituents when debating the Budget in Parliament.

He suggested the government set minimum wages according to regional conditions, achieving a win-win situation for both labour and capital, and more importantly, ensuring the sustained growth of the national economy. — DayakDaily

Advertisement