Minimum wage hike will also raise operating costs, property prices, says group
The Master Builders Association Malaysia says any wage increase should be implemented in stages through industry consultations.
The Master Builders Association Malaysia (MBAM) has warned that a minimum wage increase could lead to higher operating costs and property prices in the construction sector. This is due to the industry's significant reliance on foreign workers, which makes labor costs a major expense. MBAM president Kenneth Liew explained that a wage hike would not only affect basic wages but also overtime rates and related payments.
Many construction contractors are bound by fixed-price contracts signed before the wage review and may struggle to pass on additional costs to buyers. If the increase is not shared, it could eventually be reflected in project costs and property prices, Liew warned. To alleviate this pressure, Liew suggested the government should introduce the wage hike gradually with consultations and provide a price adjustment mechanism for existing contracts.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Minimum wage hike will also raise operating costs, property prices, says group freemalaysiatoday.com
