In response to Human Resources Minister Sivakumar Varatharaju Naidum’s saying that the Amendments to the Employment Act 1955 will come into force on Jan 1, as previously planned, Tan Sri Low Kian Chuan, President of the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) urges the government to defer or implement it gradually in phases, allowing some breathing space for SMEs to get back on their feet and contribute to the economic recovery.

Tan Sri Low said, as the unity government prioritizes on facing economic and financial challenges as well as sustaining economic recovery, SMEs being the backbone of economy, are still striving to recover, many of which have yet to get back on their feet from the catastrophic impact. As such, the implementation of the 2022 Employment Act (Amendment) at this critical period is against the goal to revitalize the economy. Higher minimum wage of RM1,500 has already increased employers’ operating costs, pushing them to the brink of survival. The implementation of Employment Act (Amendment) could be the last straw to break the camel’s back.

He stresses that ACCCIM has submitted numerous studies and proposals to the government to convey our view on this issue. He reiterates that businesses are not against the implementation of the 2022 Employment (Amendment) Act, but given still challenging economic and business environment, the government should consider the pressures faced by businesses and review the feasibility and impacts of the Act. Therefore, a gradual and implementation in phases is more appropriate rather than a sudden implementation.

Tan Sri Low stated that many businesses are facing the issues of shortage of foreign workers, rising raw materials price, increasing transportation costs and electricity costs, not to mention the risk of domestic economic slowdown next year. Hence, the government should focus on solving these issues and assist businesses to get over it.

“The weekly working hours are reduced from 48 hours to 45 hours and all employees with wages up to RM4,000/month will be entitled for overtime allowance that adds additional wage costs for businesses.”

Tan Sri Low pointed out that ACCCIM has agreed in principle to the 2022 Employment (Amendment) Act but given that businesses are still in dire straits so we hope the government can defer the above regulations.

The ACCCIM suggested that the government should consider to defer these two regulations at least 6 months subject to the recovery progress of businesses to provide some breathing room. If the recovery goes smoothly, businesses will be delighted to support the initiative; If the recovery is slow, ACCCIM hopes the government can implement the regulations gradually in phases, starting in 2024.