Malaysia studies move to increase minimum wage

Despite the rollout of government work support initiatives, employers have been reluctant to offer decent salaries to potential workers.
By: | February 22, 2022
Topics: Compensation and Benefits | Health and Wellness | Malaysia | News

The Malaysian government is currently studying the possibility of increasing the minimum wage to attract potential workers who might instead choose to be gig workers otherwise. 

“If they do not get anything more than RM1,200 (US$287), I think they’ll prefer to be in the gig economy. This is a big challenge,” highlighted Human Resources Minister Datuk Seri M. Saravanan, according to The Star. 

“If not, we will face a challenge in convincing them to take up the opportunities rolled out by agencies under the ministry,” he added. 

Despite the rollout of government work support initiatives, it has been challenging for the ministry to convince employers to offer decent salaries to potential workers, he noted. 

READ: Malaysia urges firms to return to WFH arrangements

Prime Minister Datuk Seri Ismail Sabri Yaakob had earlier said that the government is holding engagement sessions with employers on the potential minimum wage hike.

Previously, Saravanan highlighted that the minimum wage rate of RM1,500 (US$359) would be implemented before year-end.