Immediate increase in minimum wage may reverse business recovery - FMM

The Federation of Malaysian Manufacturers (FMM) has raised concerns that the immediate jump to RM1,500 for a minimum wage from May 1 may result in a steep cost increase and reverse the otherwise optimistic business recovery for 2022.

President Soh Thian Lai said the increase from the current RM1,200/RM1,100 to RM1,500 represents an immediate increase of 25-36 percent on the basic salary which will have a tremendous knock-on effect on the overall payroll cost and have a spiralling impact on business costs that could potentially derail the economic recovery.