Malaysian firms to go bust if minimum wage set: Minister
Afp, Kuala Lumpur
Malaysian labour union's demand for a 900 ringgit (261 dollars) minimum monthly wage for private sector workers will only result in many companies going bust, a junior minister said Wednesday. Last month, thousands of workers, led by the country's largest union group, Malaysian Trades Union Congress (MTUC) staged a nationwide protest calling on the government to fix a minimum wage. "There are about two million foreign workers in this country. If everyone is give a minimum wage as sought by MTUC, many local companies will close," said Deputy Human Resources Minister Abdul Rahman Bakar, according to state news agency Bernama. The minister, who was speaking to lawmakers in a parliamentary session, said that so far 335 companies had wound up because of high production costs and wages. "The government will not fix a minimum wage if it is going to affect the national economy," he said. According to the MTUC, wages of plantation, textile and garment and hotel workers in Malaysia remain below 400 ringgit a month. About seven million workers would benefit from a minimum wage rule, union officials said.
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