Malaysia to raise minimum wage to RM1,500 on May 1
The Malaysian government will be raising the minimum wage for workers to RM1,500 (US$357) from RM1,200 (US$286) effective May 1. The revised minimum wage would apply to private sector companies nationwide that are employing a minimum of five workers.
Further discussions will be held between the Human Resources Ministry and the Entrepreneur Development and Cooperative Ministry to allow small and micro companies to postpone the implementation of the minimum wage as they may not have the financial ability to adopt the policy yet, said Prime Minister Datuk Seri Ismail Sabri Yaakob, reports the New Straits Times.
The decision to raise the minimum wage was however met with disappointment by business organisations such as the Malaysian Employers Federation and the Federation of Malaysian Manufacturers, citing rising costs that would impede economic recovery from the pandemic, and result in businesses winding down.
Human Resources Minister Datuk Seri M. Saravanan had earlier told the lower house of Parliament that the higher minimum wage rate would be implemented by year-end.