The Sarawak Bank Employees' Union (SBEU) has made a bold statement regarding the RM1,700 minimum wage announced in the recent Budget 2025 presentation, urging businesses that cannot afford the new rate to employees to close down.
They argue that businesses that cannot pay this basic wage, which is below Malaysia's poverty level, should not operate at all.
The union criticized organizations such as the Malaysian SME Association for causing unnecessary panic by predicting widespread business closures.
SBEU Chief Executive Officer Andrew Lo expressed dismay at claims that the wage hike will cripple small businesses, especially when many of these businesses have raised prices well before the last minimum wage adjustment in 2022.
Lo further challenged businesses to disclose their financial records to justify insolvency concerns due to the RM200 increase in the minimum wage.
While some business owners are concerned that rising costs and mandatory EPF contributions for foreign workers may push their businesses into bankruptcy, unions argue that the minimum wage increase is fair and should have been implemented sooner.
The SBEU believes that the labor share of the country's income, which lags behind that of neighboring countries, should be improved, and that paying workers fairly is an important step.
