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The Star
6 days ago
- Business
- The Star
Lend SMEs a hand, govt urged
Groups: Incentives among ways to help them manage minimum wage hike impact PETALING JAYA: While implementing the RM1,700 monthly minimum wage order is a commendable move by the government, experts and business groups are concerned whether the higher cost will be passed down to consumers. They also said the government should assist struggling small and medium enterprises (SMEs) to cope with the minimum wage order, which takes effect on Aug 1. Economist Dr Yeah Kim Leng said SMEs that are generating adequate revenue should be able to shoulder the wage increase, though some breathing space should be provided to industries to help them cope temporarily amid global uncertainties due to geopolitical conflicts. 'To retain productive workers, most enterprises are already paying above the minimum wage. 'For firms and businesses with a large workforce, the cost impact will be material and we may see the higher wage cost passed on to consumers,' said Yeah, who also argued that promoting Progressive Wage Policy (PWP) when companies are grappling with all-round cost increases is academic at this point. The ultimate goal, he said, is to achieve the desired virtuous circle of high wage income leading to high consumption, creating in return demand for products and services provided by enterprises. 'Continuous engagement with industry players is crucial to ensure systemic negative effects are addressed quickly with targeted support and measures as well as safeguards against creating market distortions and dependencies,' he said. Malay Businessmen and Industrialists Association of Malaysia president Mohd Azamanizam Baharon said the minimum wage policy could boost living standards and economic growth. 'However, many micro and small businesses remain burdened by rising utility costs, raw material prices and ongoing economic uncertainties. 'To help MSMEs adapt, Perdasama calls on the government to provide targeted incentives, accessible financing, automation and digitisation support, and enhanced supply chain development,' he said. Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) secretary-general Datuk Jeffery Tan said the government should assist businesses to cope with the increase in labour cost. 'In big cities, hiring local staff at the minimum wage is difficult. 'However, in states with more rural areas, this will definitely impact the cost of living. 'This is why ACCCIM had always asked that the government localise the minimum wage based on location. If we keep increasing the minimum wage while productivity lags behind, it will affect our competitiveness,' he said. Tan hopes the government will provide more automation and digital grants to assist SMEs to further automate and digitalise. 'Thirdly, we also hope the government will postpone the implementation of the 2% EPF contribution for foreign workers, the petrol subsidy rationalisation, and the foreign worker multi-tier system,' said Tan, who is also president of the Klang Chinese Chamber of Commerce and Industry. SME Association president Chin Chee Seong echoed similar sentiments, saying that the slew of cost increases will pose as a challenge to businesses. 'With the SST, there is an increase in cost, on top of the increase in electricity tariffs. I do not foresee businesses being able to implement progressive wages in such a climate,' said Chin. Federation of Chinese Associations Sarawak president Datuk Richard Wee said it is possible that many SMEs and micro businesses will shut down with the full enforcement of the new minimum wage. 'As for the expansion of SST, it will definitely affect businesses as a whole as it will have a cascading impact, given that products and the supply chain are closely connected to each other to the extent that even if the product may be exempted, the services related to the supply of the product are still subject to SST. 'The government should get over political considerations and re-implement GST as most countries have GST, which is considered a more efficient and progressive tax system,' said Wee. Industries Unite MCO2.0 group coordinator Datuk Irwin Cheong said the government should relook at the different segments of industry rather than sweeping across the board as workforce in multinational firms are bigger than those in small enterprises. 'Wages should be based on the agreed upon measurements, improvement benefits, different level compensation plans, and may also outperform the basic minimum wage option. 'One of the larger block of smaller enterprises may have to fork out an even higher increment into their overall cost and expenses as they too hire local workers, TVET graduates and school leavers,' said Cheong. On July 22, the Human Resources Ministry announced that the Minimum Wage Order will take effect Aug 1 for all employers regardless of the number of their employees. The ministry said the new rate announced in Budget 2025 has been in force since Feb 1 for employers with five or more employees, as well as for those conducting professional activities classified under the Malaysia Standard Classification of Occupations 2020.
New Straits Times
6 days ago
- Business
- New Straits Times
Chinese chambers of commerce welcomes govt's measures to ease cost of living
KUALA LUMPUR: The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) has welcomed the government's newly announced measures aimed at easing the cost of living and boosting consumer spending. "These measures would help to ease the cost of living and spur household consumption expenditure," ACCCIM said in a statement. Earlier today, Prime Minister Datuk Seri Anwar Ibrahim made a highly anticipated announcement, which he described as an 'extraordinary tribute' to Malaysians. The measures include a one-off RM100 cash aid for all Malaysians aged 18 and above, the freezing of toll hikes on 10 highways, and continued Rahmah Madani sales. The government also announced that the RON95 petrol price will be reduced to RM1.99 per litre when targeted subsidies begin this September. In addition, Sept 15 has been declared a public holiday for Malaysia Day celebrations. The association said that the fuel price drop would benefit around 18 million car and motorcycle users, pending further details on the eligibility criteria. ACCCIM expressed hope that the targeted subsidy mechanism would be easy to implement to ensure a smooth rollout. Looking ahead, ACCCIM said it was looking forward to the tabling of the 13th Malaysia Plan (13MP) on July 31 and the 2026 Budget on Oct 10, with a focus on sustaining economic resilience and development continuity. The chamber urged the government to avoid new tax measures or policies that could further burden businesses, which are already grappling with rising costs.
The Star
6 days ago
- Business
- The Star
ACCCIM welcomes new measures to ease cost of living
PETALING JAYA: The slew of measures announced by Prime Minister Datuk Seri Anwar Ibrahim will help to ease the cost of living and spur household consumption expenditure, says the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM). "ACCCIM welcomes the Prime Minister's announcement of measures to show its appreciation to rakyat, including one-off cash aid of RM100 for all Malaysians aged 18 and above under the Sumbangan Asas Rahmah (Sara) aid initiative, Rahmah madani sales and the freezing of toll hikes. "Malaysians will enjoy a lower RON95 petrol price of RM1.99 per litre once the targeted subsidies come into effect in September," it said in a statement on Wednesday (July 23). ALSO READ: All adult Malaysians to receive RM100 under Sara programme for Merdeka Day, says PM Pending the detailed announcement of the fuel subsidy rationalisation mechanism in terms of eligible criteria, it said the reduction in price of RON95 petrol by 6sen per litre would benefit around 18 million car and motorcycle users. ACCCIM also said it hoped the new targeted subsidies would be implemented smoothly. ALSO READ: RON95 petrol price to be lowered to RM1.99 per litre for eligible Malaysians On the special holiday on Sept 15 in appreciation of Hari Malaysia celebration on Sept 16, ACCCIM said this would encourage local travel over the long weekend break but this could lead to additional labour costs, which would add to the overall cost of doing business. ACCCIM also said it was looking forward to the tabling of the 13th Malaysia Plan (13MP) on July 31 as well as Budget 2026 later, adding that the government's five-year blueprint and spending plan would ensure the continuity of national development, prioritise sustainable economic resilience and high-quality investment. ALSO READ: Putrajaya postpones toll hikes for 10 highways, says PM Anwar ACCCIM also said it hoped that there would be no tax measures or policies introduced under Budget 2026, that would further burden businesses already reeling from cost increases. "Malaysia must continue to maintain pro-investment and business-friendly policies to attract and retain both domestic and foreign investments, fostering economic growth," it added.
Independent Singapore
15-07-2025
- Business
- Independent Singapore
Chief minister says life in Johor now more expensive; property prices may even be higher than in some places in SG
Photo: Facebook / Rafik Abd Rashid (for illustration purposes only) JOHOR BAHRU: Over the weekend, Johor's chief minister Datuk Onn Hafiz Ghazi noted how prices in Johor Bahru, specifically for food, rent, and homes, have gone up. As Johor moves towards its goal of attaining developed status by 2030, Mr Onn Hafiz said that addressing inflation will be a crucial part of his focus. The chief minister said that his current main challenge is tackling inflation in the state, and his administration is working towards tempering it in such a way that it does not stifle growth. The development of the state must work first of all for its own people, Mr Onn Hafiz added, which means that prosperity and affordability need to come hand in hand, the Malay Mail reported. Mr Onn Hafiz made these remarks at the 79th annual general meeting of the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) on Sunday (Jul9 13). He noted that the growth Johor has seen is partly due to the 'thousands of Singaporeans' crossing the Causeway, especially on weekends, to do their grocery shopping here. This has affected the prices of food, rental, and property in Johor, which have increased at a faster rate than in other Malaysian states. Mr Onn Hafiz cited the example of a serving of nasi lemak with fried chicken, which costs RM7 (S$2.10) in Kuala Lumpur, the country's capital. In Johor Bahru, it costs RM9 (S$2.71). 'Recently, we are seeing food and also rental prices going up in line with the rapid development… That clearly shows Johor is becoming more expensive,' he said. The chief minister also spoke about a developer who told him that around 300 units of his housing project had been sold quickly, which showed that Johor Bahru property has been 'selling like hotcakes.' 'However, there is a risk that property prices here are either rising or already higher than some in Singapore,' he added, underlining the need for housing to remain affordable so locals do not lose out. In his speech to the ACCCIM, he appealed to the business community to work hand in hand with the government to make Johor, as well as the whole country, more prosperous. 'The state government is prepared to work with viable partners to ensure that this is not a zero‑sum game but a win‑win situation for all,' he said. /TISG Read also: Malaysia's PM Anwar vows to 'make necessary adjustments' from SEZ foreign investors' feedback 'if absolutely necessary' () => { const trigger = if ('IntersectionObserver' in window && trigger) { const observer = new IntersectionObserver((entries, observer) => { => { if ( { lazyLoader(); // You should define lazyLoader() elsewhere or inline here // Run once } }); }, { rootMargin: '800px', threshold: 0.1 }); } else { // Fallback setTimeout(lazyLoader, 3000); } });
Malay Mail
13-07-2025
- Business
- Malay Mail
Johor exco: State hopeful of positive outcome from federal govt-US trade talks
JOHOR BARU, July 13 — The Johor government is optimistic that ongoing trade negotiations between the federal government and the United States will yield mutually beneficial outcomes, said Lee Ting Han. The state Investment, Trade, Consumer Affairs and Human Resources Committee chairman said a positive outcome was crucial for Johor. 'Johor is directly impacted by the coming trade tariffs as we are among the biggest export contributors in petrochemicals, semiconductors, electrical and electronic goods, and furniture to the US. 'At present, it's a wait-and-see situation for us before the deadline next month. 'We hope that the Ministry of Investment, Trade and Industry (Miti) can deliver some good news after their negotiations with their US counterparts,' he told reporters on the sidelines of the Associated Chinese Chambers of Commerce and Industry of Malaysia's (ACCCIM) 79th annual general meeting at the Thistle Hotel here today. Miti is currently in talks with US trade representatives to address unresolved issues, clarify the scope and impact of the announced tariffs, and work towards concluding the negotiations. The US is expected to impose a 25 per cent reciprocal tariff on Malaysian exports, set to take effect on August 1. Lee said the state government would refrain from making further comments until after the tariffs are implemented. 'It's still early for the state government to comment further on this issue. 'Depending on the outcome of the negotiations, we will address the tariff's impact with the various industries in the state,' he said. On the issue of inflation in Johor, Lee said it was being addressed as a preventive measure led by the menteri besar. He said Datuk Onn Hafiz Ghazi had taken public concerns seriously and was proactive in tackling the matter. 'For Onn Hafiz, prevention is better than cure. He also doesn't want to see inflation becoming a major issue once the Johor Baru–Singapore Rapid Transit System Link (RTS Link) and the Johor–Singapore Special Economic Zone (JS-SEZ) are completed. 'With that, the menteri besar has also tasked the state government with developing strategies to curb the rising cost of living,' he said.
