PETALING JAYA, March 6 (Bernama) -- The national minimum wage policy should

be introduced in phases to give companies and businesses time to adjust, said a

group of 16 business and manufacturing associations.

Its spokesman, Lim Kok Boon, said while the group hailed the new policy as a

way to realise the government''s aim to become a high-income nation, the current

concern was its implementation.

Lim, who is also president of Malaysian Plastics Manufacturers Association,

said the companies and businesses must be given time to adjust, otherwise they

would be forced to find other ways to cut costs and this could result in job

losses.

"We are concerned that productivity will lag significantly following the

introduction of the policy.

"This will increase the cost of production and make us uncompetitive," he

told reporters here today.

He said policies like the minimum wage were best implemented when the

economy was growing.

"As the global economy has not fully recovered, many exporters are being

forced to compete on price and will not be able to pass on cost increases to

their customers," he said.

Lim said a sudden and substantial increase in wages would result in closures

of some 200 small plastics manufacturing companies, defined as those who

employed fewer than 50 workers.

"This would cause a permanent loss of 10,000 jobs to the economy," he said.

He said another 10,000 jobs from medium- to large-sized companies were at

risk with the higher wage bill with the introduction of the policy.

Human Resources Minister Datuk Seri Dr S. Subramaniam had said the minimum

wage policy for private sector employees would be announced by Prime Minister

Datuk Seri Najib Tun Razak, this month. -- BERNAMA

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