Malaysia’s minimum wage can be raised in phases
Tan Sri Abdul Wahid Omar said this is because the government has the capacity to accommodate the increments.
This can be done gradually over a period of time to give businesses enough time to plan accordingly, said Abdul Wahid, who is currently the chairman of Bursa Malaysia.
Increasing the minimum wage would spur companies to step up automation and improve their processes, subsequently creating more high-value jobs for local workers, he said.
“It is important for all employers to ensure that their employees are sufficiently remunerated and are provided with good facilities, as well as a safe and conducive working environment. I think there is actually room for wages to be increased over time, but what is important for the government (is) to set a long-term or medium-term target,” he told a virtual press conference on the sidelines of the virtual 2021 APAC Summit.
Malaysia’s minimum wage was last raised by RM100 (US$23.9) on February 1 last year. Abdul Wahid said he hoped that businesses would take the initiative to offer fair remuneration for their workers instead of waiting for the government to announce a new policy on the minimum wage, according to The Star.