KUALA LUMPUR: The Malaysian Retailers Association (MRA) has called for a zone-based minimum wage policy to address disparities in living costs across the country.
MRA president Datuk Andrew Lim suggested adopting a model similar to Indonesia where minimum wages are adjusted according to regional living costs.
Lim said the association was receptive to the idea of raising the minimum wage.
"But we are proposing the government to impose a minimum wage according to zones. For example, the cost of living in Perlis is lower, whereas it is higher in the Klang Valley hence, a zone-based system would better reflect these differences."
On the latest minimum wage increase to RM1,500, he said the Klang Valley had experienced a shortage of labour due to workers from other states being unable to afford the higher living costs here.
Lim questioned the rationale behind minimum wage increases for foreign workers, saying that the main advantage of employing foreign labour is cost-effectiveness.
"Foreign workers should supplement the workforce in sectors like plantations and construction where local labour is insufficient. The Malaysian labour market must prioritise Malaysians," he said.
On foreign workers contributing to the Employees Provident Fund (EPF), he expressed concerns about potential long-term implications.
"Foreign workers should be encouraged to return home after their contracts. But by making EPF contribution mandatory for them, are we creating an incentive for them to stay here?" he asked.
Lim said the government needs to protect jobs for Malaysians while ensuring foreign workers contribute only in sectors such as plantation and construction where there is a shortage of manpower.