Malaysia to exclude some sectors from minimum wage rate mandate
Some industries will be given flexibility when Malaysia’s RM1,500 (US$355) minimum wage rate comes into effect on May 1, said Human Resources Minister Datuk Seri M Saravanan.
These include the informal sector, companies employing less than five workers, and businesses facing huge losses such as the hospitality and tourism industries, he said.
The government would also grant a period of one year of flexibility for any party in need, which can also be extended according to the minister’s purview, he added.
“Odd-job workers are still earning RM500 (US$118) to RM600 (US$142) salary. If I force companies to pay them RM1,500 they will soon be out of a job,” he said at a press conference, reports Malay Mail.
Malaysia’s Prime Minister Datuk Seri Ismail Sabri Yaakob announced in March that the country will implement the RM1,500 minimum wage starting May 1 nationwide.
To foster skills among citizens, the government is also aiming to offer 50,000 micro qualification training places to Malaysians by end-2022, under the Microcredential HRD Corp initiative.
Over three million micro training placements will also be offered over the next five years, said Saravanan.