Association calls for more input from SMEs before implementation of Progressive Wage Model

KUCHING (Dec 2): The Small and Medium Enterprises Association (Samenta) has called upon the government to get more feedback from small and medium enterprises (SMEs) prior to the trial run for the Progressive Wage Model next year.

Samenta chairman Datuk William Ng concurred with Economy Minister Rafizi Ramli, who had said that the wage model would have both positive and negative effects on the SMEs.

“He (Rafizi) has also indicated that the viewpoints of employer groups and trade unions have been sought in drafting the white paper.

“We would like to urge the Minister and his ministry to quickly bring the conversation to the SMEs, who may or may not be represented by the employer associations, and whose specific needs and challenges may not have been adequately represented in the policy discussion surrounding the Progressive Wage Model,” he said in a statement yesterday.

Ng pointed out that the quantum of increment to be suggested by trade unions and groups representing large employers might not be reflective of the financial capability of SMEs.

“Any increment of productivity and profitability in any sector may not be reflective of the disparity in productivity gain between larger firms and SMEs.

“Samenta is supportive of any effort to raise the income of Malaysians. It is a deplorable state of affairs that more than half of all Malaysians are earning below subsistence wage.

“It is a common myth that SMEs do not want to pay more for talents with the right skills. In our recent survey in September, two out of three SMEs named talent shortage as their primary challenge.

“As such, no right-thinking SME owner would hold out on paying more to workers if their business margin would permit it,” he said.