Plan minimum wage hikes to avoid shocks to industry, says Mydin boss

Managing director of hypermarket chain Mydin Ameer Ali Mydin says a progressive increase better than a sudden increase. (Bernama pic)

KUALA LUMPUR: Ameer Ali Mydin, the managing director of hypermarket chain Mydin, has advised the government to raise the minimum wage in stages to avoid causing shocks to the retail industry.

He said any increase must be planned ahead and communicated clearly to the industry.

“A progressive increase and made known in advance is better than a sudden increase. Make it clear if the increase is by RM50 or RM100 per year.

“Also, the quantum of increase must be higher than the rate of inflation, otherwise consumers will have no disposal income to induce them to spend.

“Retailers depend on the disposal income. So, if we have a higher disposal income, of course it will help the retailers,” he told reporters after presenting his views to the Council of Eminent Persons here today.

He said he shared with the council the state of the retail industry, ways to reduce the high cost of living and the kind of policies that would help boost the industry.

Commenting on the proposed Sales and Services Tax (SST) expected to be introduced in September to replace the goods and services tax (GST), Ameer said an initial lower SST rate could increase compliance by businesses.

“Let’s say if you have a low SST rate of about 3% to 4%, then compliance will be higher,” he said.