Bridging the pros and cons

KUALA LUMPUR (Feb 12, 2014): Minister of International Trade and Industry (Miti) Datuk Seri Mustapa Mohamed has assured industry players that Miti will hold an intensive engagement with them in the next review on the impact of the minimum wage policy on cost of doing business, even though the date of the said review could not be specified or confirmed.
Mustapa's statement comes after the Federation of Malaysian Manufacturers' (FMM) statement released on Jan 13 which lamented the implementation of the minimum wage policy, saying that it was unsatisfactory as it had significant uncertainties and labour issues due to insufficient time and notice given for the change.
Speaking to reporters during the ministry's Chinese New Year networking session with the private sector yesterday, he said: "The (review on the) quantum of minimum wage is from time to time. For the next review they are asking us for intensive consultation with industry players."
Mustapa said a recent survey by SME Corp highlighted that some companies were not in a position to implement the minimum wage.
"We (the ministry) will work closely with FMM on how we can further enhance the competitiveness of our companies. It is an important issue. If we are not competitive, certainly our companies cannot survive," he said.
He said the manufacturing sector continues to be an important component of the economy. It accounts for 28% of Malaysia's gross domestic product.
"We will continue to enhance the contribution of the manufacturing sector to the country's economy in terms of job creation," he added.
Mustapa said FMM also requested the ministry to further improve the process of hiring foreign labours.
"We will have to be mindful of the downside. In the end, the government will have to balance the interest of employees and employers," he said.