KUALA LUMPUR: Having a higher minimum wage of RM1,500 monthly as proposed by Pakatan Harapan will cause unemployment and ultimately impact the country, Human Resources deputy minister Datuk Seri Ismail Muttalib said.
He described the opposition's plan as "not feasible", adding that a high minimum wage would cause the closure of factories due to the increase of cost.
"Employers would not be able to manage their operational cost that would increase tremendously, and some might even shut down certain operations as they would not be able to manage the high costs.
"Also, this will result in loss of jobs that will in turn cause high unemployment rates.
"Finally, it will stunt the growth of SMEs and as a result, the country and economy will lose high-skilled workers due to the lack of jobs," Ismail told the House on Wednesday.
He was responding to Gerik MP Datuk Hasbullah Osman who asked about the impact of setting a high minimum wage, in light of the RM1,500 proposed by Pakatan Haparan in its shadow budget last week.
Ismail added that the government would only accept an appropriate minimum wage that would not burden any party and that the minimum wage will only be increased after a proper study by the National Wage Consultative Council.
He also pointed out that Malaysia has one of the highest minimum wages in the region.
"Compared with the RM1,000 minimum wage in the peninsula, the minimum wage in Myanmar is at RM340, Laos RM479, Cambodia RM629, Philippines RM909, Indonesia RM382, and Vietnam is RM600.
"Increasing the minimum wage involves many components like looking into the economic index and consultation must be done with the World Bank while making sure the rights of employees are always guaranteed.
"The government through the National Wage Consultative Council must make sure the minimum wage is always consistent and not flip-flop like what is being championed by certain quarters," Ismail added.