KUALA LUMPUR: The new minimum wage, set to be reviewed this year, should be realistic to meet the needs of both employers and employees.
Malaysian Employers Federation president Datuk Dr Syed Hussain Syed Husman said the new minimum wage should be based on current cost of goods and services and the affordability of employers to pay.
"There will be a review and study by the National Wages Consultative Council. We will have to wait for the findings.
"We will have to wait for the studies and discussion by the members of the council. If it shows that an increase is needed then we will need to determine what the amount is.
"It will be based on the cost of goods and the affordability of all parties (employers) to pay. It has to be realistic to meet the needs of all parties," he said.
He added that businesses too were affected by the current Sales and Service Tax (SST) hike especially when 97 per cent of businesses in Malaysia were small and medium enterprises (SME).
"We believe that companies that are doing well are paying above the minimum wage but Malaysia is 97 per cent SME. All are working to make ends meet," he said.
Earlier today, Human Resources minister Steven Sim said the government would review the minimum wage this year, taking into account the views of both employers and employees.
He said the review would be based on the National Wages Consultative Council Act 2011.