Every RM100 wage hike could slash consumer firms' earnings 2.7pct: Analysts

New Straits Times S. BIRRUNTHA · News & blogs · 1 hr ago

Key points

BIMB Securities sees a potential RM2,000 minimum wage as supportive of household incomes and domestic demand, saying it would make the benefits of economic growth more inclusive.
As such, a potential RM2,000 minimum wage would be more likely to boost incomes than trigger a sharp rise in inflation, it said.
BIMB Securities said raising the minimum wage to RM2,000 in 2027 could give workers in that age group an immediate 5.3 per cent increase in median earnings, while strengthening incentives to join the workforce.

Sentences selected automatically from the original article by New Straits Times.

KUALA LUMPUR: Every possible RM100 increase in minimum wage could cut consumer companies' earnings by up to 2.7 per cent, according to analysts.

They also said a minimum wage hike will strengthen household incomes and domestic demand without fuelling significant inflation.

Kenanga Research said a minimum wage increase could cut consumer-sector earnings by 0.1-2.7 per cent for every RM100 rise.

However, the firm noted that stronger household incomes could provide some offset.

Kenanga Research said the impact would be differentiated across the sector.

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