THE implementation of the RM1,500 minimum wage effective May 1 needs fine-tuning so it does not burden companies and entrepreneurs in small and medium industries in the country.

Deputy Plantation Industries and Commodities Minister Willie Mongin said the government must consider the burden that some companies or entrepreneurs may face, especially those who are just starting out.

“I hope the government can look into this scheme because we do not want to see entrepreneurs who have just expanded their business and are new to the business world be burdened,” he said after officiating at the Segu Bunuk Penrinssen Association office in Kampung Bunuk, Borneo Peak Road, Kuching, today.

Willie also hopes that the minimum wage will be implemented with a “win-win” formula, with little pressure on entrepreneurs.

“If they have 1,000 employees and have to pay a minimum salary of RM1,500, it will be very burdensome because they not only have to pay the basic salary but also see an increase in Social Security Organisation and Employees Provident Fund contributions,” he said.

In addition, he said after two years of Covid and as the country’s economy recovers, complying with the directive may prove to be a challenge for small and medium industries.

When asked whether the implementation of the minimum wage could be delayed, Mongin said this would be up to the government and the Human Resources Ministry.

“For me personally, I request they consider this matter first because we have to identify the challenges these entrepreneurs are facing,” he said. – Bernama, April 16, 2022.