MPMA submits 10 proposals on minimum wage order review

KUALA LUMPUR: The Malaysian Plastics Manufacturers Association (MPMA) has submitted 10 proposals to the National Wage Consultative Council (NWCC) regarding the impending review of the Minimum Wage Order.
MPMA President Lim Kok Boon said the implementation of the minimum wage policy had adversely affected the manufacturers in the plastics industry, particularly the small and medium enterprises.
"Labour cost is a major cost component in our industry. After the implementation of the minimum wage policy, our members' direct labour cost has increased by 20 to 40%," he said in a statement today.
Besides the higher labour cost, Lim said plastics manufacturers were also suffering from the increase in electricity tariff, transportation, raw materials, packaging and other operational costs which have resulted in the increase in total manufacturing cost by more than 10%.
Worse still, he said the majority of the plastics manufacturers were unable to pass on the increase in cost to customers as the bulk of the plastic finished products are exported.
"The inability of the plastics manufacturers to pass on the cost increase to their customers and failure to implement effective measures to reduce their manufacturing cost will result in many of us suffering severe erosion in profits, or losses.
"Some companies may have to eventually fold up or reduce their workforce. This would invariably result in job losses for the workers, which runs contrary to the objective of the minimum wage order," he added. – Bernama