Lo criticises Guan Eng for calling upon the federal government to exclude foreign workers from increase in minimum wage scheme

KUCHING, Sept 30 2030: Labour Solidarity and Learning Resources Association (LLRC) deputy president Andrew Lo has criticised national DAP adviser Lim Guan Eng for calling upon the federal government to exclude foreign workers from increase in minimum wage scheme,

Caption: LLRC deputy president Andrew Lo says that higher wages will lead to increase in domestic consumption and more business for employer

He said the exclusion will mean that employers will stop employing locals and employ lower pay foreigners.

"If Lim really wants to help business he should push for higher wages so that it will in turn push investments in technology and higher productions instead of forever addicted to low wage economic model. 

"Higher wages will lead to increase in domestic consumption and more business for employer," Lo said in a statement.

Lo also said Sarawak  United People's Party (SUPP) call for the government to boost business before increase wages has no justifiable basis. 

"The fact is that productively has been boosted, yet wages has fallen behind," he claimed.

Lo, who is also the Sarawak Bank Employees Union (SBEU) chief executive officer, said increase wages will boost the economy and that is because workers spend 100 per cent on what they earn, pointing out that profits of business are not fully taxable with all sorts of exemptions and they may be invested in not productive and speculative sectors or may even be invested overseas.

He also called on employers to stop being cry babies every time minimum wages are reviewed.

In a statement posted on Facebook, Guan Eng called upon the government to exclude foreign workers from any increase in the minimum wage.

He said the proposed revision, expected to be announced when Budget 2027 is tabled on Oct 9, should take into account the pressures faced by micro, small and medium enterprises (MSMEs).

Prime Minister Datuk Seri Anwar Ibrahim had said the current RM1,700 minimum wage was expected to be raised, with details to be announced when 2027 Budget is tabled.

Lim said any increase should not apply to foreign workers, arguing that local employers had hired them based on previously agreed employment contracts.


SUPP Batu Kitang secretary Amy Tnay said the government should strengthen the economy and ensure businesses are capable of raising wages sustainably before imposing further pressures on wages.

She said sustainable wage growth must be underpinned by economic growth, business expansion, and improvements to productivity.

Tnay said businesses should be pushed to raise wages, but for them to have the capacity to raise wages.