SUPP Stakan chairman: Minimum wage increase may lead to higher price for goods

In a statement today, Sim explained that the planned wage hike, from RM1,500 to RM1,700 starting February 2025, may create a ripple effect, pushing up other wages and, subsequently, prices.

He was responding to Prime Minister Datuk Seri Anwar Ibrahim’s announcement in tabling Budget 2025. Businesses with fewer than five employees will be given a six-month delay to comply with the new minimum wage requirement.

Sim also cautioned that the introduction of targeted subsidies for RON95 petrol in mid-2024 should be carefully managed to prevent further inflation, especially as it coincides with the wage increase.

While he welcomed the government’s increased cash aid for the B40 and M40 income groups, Sim noted that higher fuel costs, wage adjustments, and expanded SST (Sales and Service Tax) could drive prices up.

“Hopefully, with the ‘give and take’ aspects of this budget, the impact on the cost of living will be minimal,” Sim added.

As an advisor to the Sarawak Housing and Real Estate Developer Association (Sheda), Sim also commented on the limited housing support in the budget.

Although RM900 million has been allocated for affordable housing and loan guarantees for 57,000 first-time homebuyers, he lamented the absence of the Home Ownership Campaign (HOC), which previously offered discounts and stamp duty exemptions.

“The budget also lacks the RM30,000 deposit assistance for first-time buyers, which would help them secure initial deposits,” Sim noted, adding that while a RM7,000 tax relief on housing loan interest for homes up to RM500,000 was helpful, it fell short of other potential housing incentives. — DayakDaily