Central Bank of Malaysia calls for progressive rollout of minimum wage
Malaysia’s minimum wage policy should be implemented progressively to prevent disruptions to the economy, highlighted Bank Negara Malaysia governor Nor Shamsiah Mohd Yunus.
“It is important for a policy move like this to be done in an orderly manner to support growth and not inflationary measures,” she said at a press conference.
“We need time to adjust, and a phased approach by the government will help,” she added.
Malaysia’s new minimum wage rate of RM1,500 (US$357) will take effect on May 1, which is an increase of 25% from the country’s previous minimum wage of RM1,200 (US$285).
Under current circumstances, the implementation of the new minimum wage should take into account the uneven recovery across industries, and there should be a clear and transparent roadmap for all businesses to plan accordingly on their journey to recovery, noted the governor.
BNM deputy governor Shaik Abdul Rasheed Abdul Ghaffour also commented that the revised minimum wage must be accompanied by other reforms, such as incentivising firms to transition away from cost minimisation as a key competitive strategy and producing goods and services that command a premium in the market.