Singapore companies in Malaysia do not expect big hit from minimum wage hike

MALAYSIA'S 25 per cent hike of its minimum wage to RM1,500 (S$477), effective May 1, is not expected to have a significant impact on Singapore-based companies with operations there, as many workers are already paid above that threshold, bosses told The Business Times.

Singapore Exchange (SGX) mainboard-listed Enviro-Hub Holdings said the operating costs of its Malaysia glove-making business, Pastel Glove, are expected to increase by 2 per cent to 3 per cent after the implementation of the new minimum wage policy – much less than the 25 per cent hike itself.

“Before the adjustment of the minimum wage, we have always offered a salary which is higher than the minimum wage level to attract talent,” said Adrian Toh, chief investment officer of Enviro-Hub.