MPMA: No Need to Increase Minimum Wage; Focus on Productivity to Support Higher Wages

PETALING JAYA, Selangor, Aug 26 (Bernama) -- The Malaysian Plastics Manufacturers Association (MPMA) believes there is no need for a further increase in the statutory minimum wage at this juncture, as Malaysia’s tight labour market is already creating natural upward pressure on wages. With unemployment at around 3%, employers are competing strongly for workers and making significant efforts to attract and retain employees. Market forces are therefore already contributing to wage growth, and this process should be allowed to continue rather than being replaced by a large across-the-board statutory increase.

MPMA considers the proposed RM3,100 minimum wage unrealistic and unnecessary under current conditions. A substantial increase would raise not only the wages of minimum-wage workers but also payroll costs across different employee levels as companies seek to maintain appropriate wage differentials. This comes at a time when manufacturers are already facing higher energy, logistics, freight, insurance and raw-material costs, as well as global supply-chain and geopolitical pressures.