KUALA LUMPUR, Feb 10 — The Small and Medium Enterprises Association of Malaysia today urged the Human Resources Ministry to focus on reforming the country’s labour laws to keep up with the gig economy and the reality of a post-pandemic age.
“The way forward for Malaysia and our workforce is to link income to productivity. The Productivity-Linked Wage System or PLWS, which counts the Ministry of Human Resources as among its champions, is seeing a lot of interests among businesses, including SMEs. However, our labour laws, including the Employment Act 1955, are still time-based, meaning that any attempt at implementing PLWS would have to be on top of a time-based monthly salary, and not instead of it.
“The interests of both businesses and working Malaysians are best served when income are tied to productivity, rather than a minimum wage premised upon workers working a fixed number of hours,” he added.recently that raising the minimum wage in Malaysia will not be detrimental to the economy or businesses, contrary to what some employers have claimed.
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