Recently, the Malaysian Retailers Association (MRA) unanimously recommended that the government implement a minimum wage based on cost of living zones, using the Indonesian model as the main reference.
MRA president Datuk Andrew Lim described the approach as fairer because the cost of living in Perlis is much lower than in the Klang Valley.
He said that if the cost of living is different, then the minimum wage should be aligned by zone.
This action would reflect the real reality and reduce the burden on small businesses in low-income areas.
He also questioned the cost-effectiveness of employing foreign workers with a minimum wage increase, while expressing concerns that the EPF contribution for them may create an incentive to stay in Malaysia longer.
Lim stressed that the labour market must prioritise Malaysians, while foreign workers should be retained in critical sectors such as construction and plantations.
MRA hopes the government will consider this proposal to balance the cost of living, protect people’s job opportunities, and introduce a fairer wage system that reflects the real needs of the economy.
With this proposal, are we moving towards a fairer wage system or creating a new dividing line between employers and employees?
