KUALA LUMPUR, Sept 27 (Bernama) -- Over 600,000 small and medium enterprises (SMEs) with nearly six million workers will be affected if Pakatan Rakyat implement its 'alternative budget.'
Minister of International Trade and Industry, Datuk Seri Mustapa Mohamed, said the number of workers that would be affected has not included the two million workers in the manufacturing sector.
"The RM900 minimum wage implemented early this year was the result of the detailed discussions between the workers and employers for a year.
"From a study we conducted, if the minimum wage was over RM900, it would give rise to many problems, especially the SMEs in the manufacturing sector," he told a media briefing here today.
Mustapa said if the minimum wage was too high, it would be difficult to attract investments and this would the industries.
"The factories will be forced to shut down and many workers will be unemployed. This will give rise to other problems," he said.
He said the RM900 minimum wage would be implemented in stages next year as some companies, from Sabah and Sarawak, had sent memorandums.
"With the challenging global economy, the proposed 'alternative budget' shows the opposition is irresponsible.
"Although increasing the minimum wage is a populist move, it will have huge impact on the industries and workers. This is a serious matter. We cannot promise things we cannot implement," he said.
On another matter, Mustapa said opposition's proposal to give 20 per cent oil royalty would affect oil companies.
"The companies' profits would be affected as the royalty calculation is based on the value of the output before deducting the cost.
"They will not be able to pay dividends and taxes collected will be reduced," he said.
Mustapa said the 'alternative budget' was not only unsustainable but also bad because the opposition did not give detailed explanations on how they were going to pay for it.
"It is said the 'alternative budget' will boost manufacturing industry but there are no explanations," he said.
