Security companies say they can’t afford new minimum wage

Security companies say they can’t afford new minimum wage

They say they are struggling even with the present minimum wage of RM1,200 a month.

Security companies say they can offer the new minimum wage of RM1,500 a month only if the government compensates them.
PETALING JAYA:
The Malaysian Security Industry Association (PIKM) said the government should have consulted it as a stakeholder before announcing the new RM1,500 minimum wage from May 1.

Its president Ramli Yusuff said it had sent letters to the prime minister, the finance minister and the human resources minister to explain how the industry would be affected and to ask them to postpone the implementation of the new minimum wage.

“We are struggling because companies aren’t even ready to pay RM9.50 per hour for the existing minimum wage of RM1,200,” Ramli told a press conference.

“How are we supposed to manage if they increase it to RM1,500?”

Ramli said he was only voicing out his disagreement for the security industry, which came under the purview of the home affairs ministry.

He said his association, representing nearly 950 security companies, would agree with the implementation of the new minimum wage from May 1 if the government was willing to compensate them accordingly.

“If the government doesn’t respond to our requests, we will have to discuss what action to take,” he said.

The association’s general manager, Jeff Nor Jettey, said the implementation of the new minimum wage would cripple the security industry.

“It will create an opportunity for illegal agents to offer cheaper rates to companies who are unwilling to pay the new minimum wage,” he said.

FMT has reached out to home affairs minister Hamzah Zainudin for comments.

Prime Minister Ismail Sabri Yaakob announced at the Umno general assembly on March 19 that the government would implement the RM1,500 minimum salary from May 1.

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