RM1,500 minimum wage will be implemented soon, says Saravanan

SHAH ALAM - Human Resources Minister Datuk Seri M. Saravanan today announced in Dewan Rakyat that the government plans to implement a minimum wage policy of RM1,500 soon and not by the end of the year.

He stated that the new minimum wage would be introduced after taking into account the requirements of the public and the capacity of employers.

The policy could also be implemented in the near future as Malaysian businesses are slowly recovering from the pandemic.

"In the fourth quarter of 2021, the country's Gross Domestic Product (GDP) was recorded at 3.6 per cent.

"This growth was made possible with the financial assistance by the government to the employers in ensuring they were able to continue business operations and retain their workers," he said to answer a written question from M. Kulasegaran (Ipoh Barat- PH-DAP) in Parliament today.

However, the implementation of the RM1,500 minimum wage, which is already set in 57 cities and towns in Malaysia should be done in stages said Saravanan.

“The government stressed that the increase in the minimum wage rate should be implemented in stages. This is to ensure the continuity of the company's operations and ensure that employees' jobs can be maintained.

“Excessively high and drastic increases in the minimum wage can affect the country's competitiveness causing the country's labour market to face the challenge of creating new high-quality and highly skilled jobs,” he said to answer Syed Saddiq Syed Abdul Rahman (Muar-Muda)’s written question on the increase of minimum wage to RM1,600.00 per month.

The minimum wage issue was also raised by Datuk Seri Idris Jusoh (Besut-BN-Umno), and Shaharizukirnain Abd Kadir (Setiu-Pas).