KUALA LUMPUR: The Small and Medium Enterprises Association (Samenta) has urged the government to focus on upskilling Malaysians for higher-paying jobs by attracting high-value industries instead of giving in to the frequent demand for higher minimum wage.
National president Datuk William Ng said other better tools, namely the proposed progressive wage model, can align salary increments with productivity and skills - a win-win for businesses and employees.
He said the job market has also changed significantly post-pandemic as the definition of job, workplace, and even wages are outdated.
“In other words, the minimum wage system is an outdated solution to an outdated problem,” he said in a statement.
In 2010, Ng said the median salary for Malaysians was RM1,500, and by 2023, this number jumped to RM2,600, a cumulative 73 per cent rise.
“Unfortunately, our proximity to Singapore and the weakening of the ringgit resulted in many of our trained and highly skilled workers being poached by our neighbour,” he said.
Ng also noted that in Penang and nearby Kulim alone, over 50,000 vacancies for engineers and technical staff remain unfilled, even though the industry offers salaries between RM3,500 and RM6,000 monthly.
This is despite the best efforts of our public and private educational institutions to produce these skilled workers.
“Many small and medium enterprises are already paying far above the current minimum wage. The Malaysian labour market is also highly efficient, and employers who underpay will see themselves out of business,” Ng said. -Bernama
