Image credit: The Malaysian Reserve
PETALING JAYA: The government should continue intensifying efforts to help workers ease their financial burden, as the country slowly moves towards economic recovery amid inflation and high cost of living, says the Malaysian Employers Federation (MEF).
The organisation has also urged the government not to introduce new policies and taxation that would add to the cost of doing business. Its president Datuk Dr Syed Hussain Syed Husman said 2023 is expected to be challenging economically the world over including Malaysia, and that the unity government’s revised Budget 2023 should be business-friendly.
He said the new government should focus on assisting micro, small and medium enterprises (MSMEs) – especially the micro enterprises - to get back on their feet and to assist them to sustain their businesses.
The deferment of the RM1,500 minimum wages to July 2023 is a good start by the unity government to assist such micro enterprises with fewer than five employees.
MEF suggested that the government provide additional wage subsidies like those introduced in the last three years, as well as a zero interest loan moratorium so that employers could continue with their operations and retain their employees.
“Businesses need more financial support from the government such as cheaper business loans as working capital to bounce back. Also provide incentives such as lower taxes, lower SST, cash or lump sum grants to the businesses,” he said
Currently, he said there is a shortage of local talent with digital and innovative skills.
“Survey of Issues Relating to Budget 2023 conducted by MEF revealed that 76% of respondent companies faced manpower shortage after the reopening of the economy,” he added.
He urged the government to focus on improving the relevance of skills development as well as Technical and Vocational Education and Training (TVET) systems through industry-led learning models, including the establishment of sector-specific ‘skills councils’ and the adoption of apprenticeship programmes by the relevant industries.
Syed Hussain also stressed that the increasing cost of living was a heavy burden on the rakyat.
“To assist the rakyat, they should ensure that the personal income tax rate is made more competitive.
“The capping of EPF contributions should also be removed, to encourage higher contributions.
“Contribution for private retirement scheme should be raised to RM15,000 from the existing RM3,000 to encourage savings for old age,” he said, adding that personal tax relief should also be increased.
Malaysian Trades Union Congress (MTUC) president Mohd Effendy Abdul Ghani said most of the plans in the previously-tabled Budget 2023 should remain.
With a new government in place, he said more assistance should be channelled to assist companies struggling with higher wage bills, instead of postponing the implementation of the RM1,500 minimum wage for small companies.
“Wage subsidies are among the things that should be done to help these struggling small businesses that still have to pay a higher minimum wage for their employees.
“This is also unfair to the workers because those working for bigger companies will be paid the RM1,500 minimum wage, but the rest won’t. However, the cost of living for both of these groups are the same.
“We hope that the new Budget 2023 will have a solution to help small and medium enterprises (SMEs) by not exploiting employee benefits,” he said when contacted.
Mohd Effendy said MTUC also hopes the government will make it compulsory for all private companies to provide a cost of living allowance for their workers nationwide.
The union also called on the government to review the pension rates of former civil servants, who lost out during the government’s privatisation programme involving its former agencies such as Telekom Malaysia and Tenaga Nasional.
“Their salaries were low then and so are their pensions now.
These workers also took risks at the time, especially when these agencies switched to private companies from public services.
“Their monthly pensions have no cost-of-living adjustment” he added.
Source: https://www.thestar.com.my/news/nation/2022/12/30/nurse-businesses-back-to-health-first-urges-mef