KUALA LUMPUR: A proposed RM3,100 minimum wage could discourage entry-level hiring and burden small businesses, the Malaysian Employers Federation (MEF) said.

MEF senior adviser for government, media and international engagement Datuk Dr Syed Hussain Syed Husman said wage decisions must be evidence-based and economically sustainable.

He was responding to the Malaysian Trades Union Congress (MTUC), which said the government's newly announced RM2,000 minimum wage was insufficient compared with its RM3,100 demand.

MTUC secretary-general Kamarul Baharin Mansor said the rate fell short of union targets and the RM3,400 living wage paid by government-linked companies and government-linked investment companies.