PETALING JAYA: The Malaysian Employers Federation (MEF) has urged businesses not to pass the cost of the newly increased minimum wage to consumers.
It said price increases in products and services would lead to higher inflation and reduce competitiveness.
Employers, said MEF may explore several strategies to avoid passing the increased costs to consumers by putting in place improvements in operational efficiencies, investing in employee upskilling and reskilling to improve productivity and embracing new technologies to improve operations and processes.
MEF president Datuk Dr Syed Hussain Syed Husman also urged government agencies having contracts with private sector service providers, GLCs, GLICs and larger corporations, both local and foreign, to immediately review existing contracts from Feb 1.
"This is to enable the service providers to meet their obligations to comply with the new minimum wage of RM1,700," said Syed Hussain in a statement on Saturday (Feb 1).
"The often-used excuse that it was a signed contract or running contract cannot be reviewed is no longer acceptable.
"All Malaysians must come together to make this new minimum wage a success as many small and medium scale enterprises need this support and adjustments immediately from RM1,500 to RM1,700 wages for the remaining period of the contracts.
Syed Hussain said MEF fully supports the new minimum wage of RM1,700 as a commitment to fair wages that will lead to better skills and pa roductive workforce.
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