KUALA LUMPUR (July 20): 7-Eleven Malaysia Holdings Bhd said the country's new minimum wage policy would increase the company's labour cost.
Under Malaysia's new minimum wage policy, which was effective since July 1 this year, Peninsular Malaysia workers' monthly salary has been raised to RM1,000. Workers' salary in Sabah, Sarawak and Labuan has been increased to RM920.
Today, 7-Eleven group chief executive officer Gary Brown said the group "welcomes the new policy, despite the increase in 7-Eleven's labour cost."
Brown was speaking at a press conference, after the opening of 7-Eleven's 2,000th store here today.
He however said 7-Eleven's distribution network "will be able to tap the benefits" of the new minimum wage policy. He said the policy would increase consumers' spending power.
He said the company expected consumer spending to recover in the second half of this year, as the domestic economy showed more stability.
"Economy stability could increase consumers' confidence level," he said.
At 12:30 p.m., 7-Eleven shares fell one sen or 0.7% to settle at RM1.34, for a market value of RM1.56 billion. The stock saw 31,100 shares traded.
Berjaya Retail Bhd owns 53.78% of 7-Eleven.