KUALA LUMPUR: The Ministry of Entrepreneur Development has suggested to Prime Minister Tun Dr Mahathir Mohamad that Majlis Amanah Rakyat (Mara) and other entrepreneur development agencies be placed under its purview.
“My minister has brought up this suggestion to the Prime Minister that our newly-revived Ministry take over the jurisdiction of MARA and other entrepreneur development agencies,” said Deputy Minister Mohamad Hatta Ramli.
The final decision lies with the Prime Minister. We will also be waiting for some allocation from Ministry of Finance to kick-start the operation of our ministry," he said.
The deputy minister was speaking to reporters after chairing a dialogue here today, with 22 Malaysian Retail Chain Association (MRCA) council members, led by its president Datuk Seri Garry Chua.
Shortly after assuming power following the 14th General Elections on 9th May 2018, the new Pakatan Harapan government, under the leadership of Dr Mahathir, decided to revive the Entrepreneurs Development Ministry, which was abolished by the former prime minister Datuk Seri Najib Razak in 2009.
MARA currently reports to the Rural and Regional Development Ministry while other government agencies such as Tekun Nasional, Amanah Ikhtiar Malaysia had been placed under the purview of Prime Minister Department.
The deputy minister took note of issues and suggestions raised by MRCA, which represents more than 450 small businesses, commanding some 60 per cent market share in the country's food and beverage as well as retail services space.
"The deputy minister gathered feedback, particularly on the challenges in rehiring of foreign labours, and the severe impact of drastic hike in minimum monthly wages to RM1,500 from the current RM1,000," MRCA general manager Simon Wong told reporters.
According to Wong, the Pakatan Harapan government's proposal to raise monthly minimum wage from around RM1,000 to RM1,500, could have a negative impact on MRCA members, most of whom are small and medium entrepreneurs and business owners.
"A proper study is needed to realign the basic workers’ right and employers’ cost of doing business. The minimum wage proposal, if implemented, will hurt businesses. We, at MRCA, are monitoring the development of this issue closely," he added.
Last month, Human Resources Minister M. Kulasegaran announced the government will determine the new minimum wages for the private sector.
Wong said MRCA is urging the government to draw a proper guideline in providing adequate supply of the labour supply to support the existing operations and future expansion of retail businesses.
"When our members request for foreign workers to support their current business, they are always given different instructions that are confusing and to some extent, fail to resolve the labour shortage," he said.
“There is no standard operating procedure in the approval for foreign workers,” he said.
"With the government going on the offensive to flush out illegal workers, and the difficulty in obtaining new labour supply, business operations could be disrupted," he added.
Earlier this month, the Immigration Department launched Ops Mega 3.0 to reduce the number of illegal workers in the country, which is currently estimated at two million.
Earlier Mohd Hatta was officiating at the opening of the Malaysia International Retail and Franchise Exhibition (MIRF) that runs from 26th to 28th July 2018.
Wong said the MIRF is a series of exhibition by local retailers and selected franchisors and this year, MRCA targets to generate RM70 million in gross sales.
"This is the third year the MRCA is organising the MIRF. In 2016, the event garnered RM60 million and in 2017, the value rose to RM65 million," he added.