LDP cautions against new minimum wage hike
Published on: Wed, Aug 20, 2025 Text Size: Ong criticised comparisons between government-linked companies (GLCs) and private sector businesses, noting that some large corporations and GLCs have set entry-level salaries at RM3,000. Kota Kinabalu: Liberal Democratic Party Vice President David Ong cautioned the Government against implementing another minimum wage increase soon after the recent adjustment to RM1,700, which took effect nationwide on Aug 1. He said businesses, particularly small and medium enterprises (SMEs), need more time to adapt to the current wage structure before facing additional financial pressures.
Advertisement 'Less than a year after the last increase, talk of yet another hike is premature and risks placing unnecessary strain on businesses that are still adjusting,' he said in a statement. He criticised comparisons between government-linked companies (GLCs) and private sector businesses, noting that some large corporations and GLCs have set entry-level salaries at RM3,000. 'GLCs operate under very different conditions, with guaranteed contracts, subsidies or monopolies that protect their income streams. 'Most private businesses, especially SMEs, operate on thin margins and face direct market competition,' he said. He said SMEs comprise nearly 98 per cent of Malaysian businesses and employ almost half the country's workforce. Many are currently struggling with reduced consumer demand, rising operational costs and cash flow constraints due to global economic challenges. He said premature wage increases could lead to unintended consequences, including job cuts, hiring freezes or business closures, outcomes that would ultimately harm workers rather than protect them. 'We must ask, what new skills or productivity gains have workers acquired in less than a year that would justify another wage increase?' he said, emphasising that salary increases should correspond with improved productivity and skills development. Instead of rushing into another minimum wage hike, he suggested the Government should allow businesses more time to absorb the recent wage adjustment while focusing on reducing living costs through stricter price controls and anti-profiteering enforcement. He also called for enhanced support for SMEs through training programmes, digitalisation initiatives and productivity improvement schemes. 'Workers deserve fair pay and a decent standard of living, but wage hikes must be gradual, realistic and supported by policies that strengthen competitiveness,' he said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
14 minutes ago
- The Star
Consent snag for renewal act
THE government's bid to rejuvenate ageing buildings and underutilised spaces through the proposed Urban Renewal Act has been questioned by MPs, who are urging that its second reading be delayed to address concerns over consent thresholds and the risk of gentrification. The Urban Renewal Bill, tabled for first reading by Housing and Local Government Minister Nga Kor Ming in the Dewan Rakyat yesterday, sets out a framework for redevelopment, regeneration and revitalisation projects. It provides for the establishment of Federal (FEC) and State Executive Committees (SEC) to oversee projects, as well as mediation committees to safeguard stakeholder interests. One of its most debated provisions is Clause 19, which sets the consent thresholds required for redevelopment. According to Clause 19 (1)(a) of the Bill, a unanimous consent threshold is required if the proprietor voluntarily applies to the FEC or SEC to carry out an urban renewal project. Projects initiated by either committees however, would need 80% consent for buildings less than 30 years old, 75% for buildings older than 30 years, and 51% for abandoned structures. A group of seven government MPs warned that the proposed consent thresholds are too low compared with international practice and could lead to gentrification at the expense of low-income tenants. Wong Chen (PH-Subang) noted that Hong Kong requires a 90% threshold for buildings under 50 years old, while Singapore sets an 80% threshold for those 10 years and older. 'With Malaysia having significantly more available land than Hong Kong and Singapore, we should not rush to lower this threshold. 'We strongly believe it should be set higher, at 85% for buildings older than 30 years and at 90% for those below, to protect the rights of homeowners and tenants, especially in social housing,' he said during a press conference. He pointed to a survey in Subang showing that nearly 73% of low-cost flat occupants were tenants rather than owners. 'This illustrates two fundamental issues. Firstly, social housing is primarily not owned by the underprivileged and thus their interests are not protected or improved by this Bill. 'Secondly, the gentrification exercise under this Bill will likely displace urban underprivileged tenants from the city centres,' Wong warned. He called on the government to engage further with the Parliamentary Special Select Committees on Infrastructure, Transportation and Communications, and on Women, Children and Community Development, as well as to commission a full social impact study before tabling the Bill again. Rodziah Ismail (PH-Ampang) also stressed that low-cost housing must be handled carefully. She expressed concerns over gentrification, which could push low-income residents out of urban areas and risks alienating voters. The MPs further proposed one-to-one replacement of redeveloped low-cost units to ensure genuinely underprivileged households are not left behind. Opposition chief whip Datuk Seri Takiyuddin Hassan also said the Parliamentary Special Select Committee on Infrastructure, Transport and Communications had already written to Nga, calling for the second reading to be postponed until unresolved issues raised in recent engagement sessions are settled. 'I am requesting here for the minister to delay the second reading. This is a request from the select committee itself because there are many pending issues,' said Takiyuddin. The Urban Renewal Bill, which contains 31 clauses, also empowers the Minister in the Prime Minister's Department (Federal Territories) to declare urban renewal areas in Kuala Lumpur, Putrajaya and Labuan. Developers approved to carry out projects must begin work within 24 months of declaration, though extensions can be granted. The Bill is expected to be tabled for second reading on Aug 27 before the Dewan Rakyat adjourns on Aug 28.
The Star
29 minutes ago
- The Star
Judge allows Na'imah to refer questions to Federal Court
KUALA LUMPUR: Toh Puan Na'imah Abdul Khalid (pic) is one step closer in her bid to refer eight questions to the Federal Court regarding the validity of the charges she is facing. Justice K. Muniandy, in his decision, said Na'imah's case contained constitutional issue that requires the Federal Court's intervention. 'In fact, there is a clear and compelling constitutional issue to be resolved by the apex court,' he added. He said the questions raised were not frivolous or an abuse of court process, as the Sessions Court had suggested, but rather represented a genuine and important challenge to a piece of legislation. 'The outcome of this case will have a profound impact on the rights of the individuals called as witnesses, including the applicant, in the Malaysian Anti-Corruption Commission (MACC) investigations and further define the limit of state power under the supreme law of the Federal Constitution,' he said here yesterday. The court then allowed Na'imah's revision application and ordered for the matter to be transmitted to the Sessions Court for the lower court to transmit it back to the High Court. On Jan 23, 2024, Na'imah was charged with failure to comply with a notice to declare her assets, which included Menara Ilham and several other properties in Kuala Lumpur and Penang. She was charged under Section 36(2) of the MACC Act 2009, which carries a maximum penalty of five years' imprisonment or a fine of RM100,000, upon conviction. On Feb 29, 2024, Na'imah filed an application to refer questions of law pertaining to Sections 30(5), 36(2) and 62 of the MACC Act 2009, as well as Section 32(3)(b) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 to the High Court. On Feb 18, the application was dismissed by the Sessions Court on grounds that it lacked merit, as there were no constitutional issues raised in the case. Na'imah then filed an application to the High Court to revise the Sessions Court's decision, which was decided yesterday. In an immediate statement to the press, Na'imah welcomed the court's decision. 'This outcome is bigger than any individual case. It's about protecting fundamental liberties guaranteed under our Federal Constitution, including the right to silence, the right against self-incrimination and the right to a fair trial. 'No one is above the Constitution and no one is beneath its protection,' Na'imah said.
Daily Express
an hour ago
- Daily Express
Concrete plan to tackle infra woes, says DCM
Published on: Friday, August 22, 2025 Published on: Fri, Aug 22, 2025 Text Size: "The GRS government has since appointed maintenance contractors, but such problems cannot be solved overnight – it takes time,' Shahelmey said. Kota Kinabalu: The Gabungan Rakyat Sabah (GRS) government has a concrete plan to tackle basic infrastructure woes, as opposed to the 'empty promises' made by some parties ahead of the Sabah election, said Deputy Chief Minister III Datuk Seri Shahelmey Yahya. He said while every party was entitled to pledge solutions to the people's woes, only long-term planning could deliver real results. Advertisement 'If anyone promises that these problems can be fixed immediately once they gain power, those are nothing more than empty promises. 'What is needed is long-term planning. GRS already has a comprehensive plan in place, it just needs to be implemented according to schedule,' said Shahelmey, who is also State Works Minister. Last week, Warisan President Datuk Seri Shafie Apdal told FMT that his party's priority, if it won the Sabah election, would be to improve water, electricity and road infrastructure. The former Chief Minister acknowledged that these issues were not resolved during his 26-month administration from May 2018 to September 2020, but cited constraints brought about by the Covid-19 pandemic. Giving the example of Sabah's water supply issues, Shahelmey said the Warisan government at the time decided to halt maintenance works for water treatment plants in the name of cost-cutting. 'But maintenance costs are unavoidable. Operations that previously ran smoothly deteriorated because of a lack of proper planning, including maintenance and equipment replacement. This undermined production and efficiency at water plants. The GRS government has since appointed maintenance contractors, but such problems cannot be solved overnight – it takes time,' Shahelmey said. He expressed hope that the implementation of GRS's plans could continue with a fresh mandate from the people in the coming state election, supported by larger allocations, particularly from Sabah's push for 40pc of the state tax revenues. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
