Many lament that the new RM1,700 rate is not enough and does not make much of a difference in their lives. — Pexels
THE implementation of the revised minimum wage in Malaysia since February this year has been met with gratitude by most workers, who say the increase has brought welcome relief in the face of rising living costs. However, many also lament that the new RM1,700 rate is not enough and does not make much of a difference in their lives.
Salesman Muhammad Haziq Mohd Zaidi, 26, from Batu Pahat, Johor, says the policy has directly boosted his monthly earnings and helped him plan his finances better.
“I’m really thankful for the minimum wage increase. It raised my basic salary by about RM500, and now I’m earning around RM2,700 monthly,” says Haziq, who works with a medical equipment supply company in Johor Baru.
“With that increase, after settling my rent, car loan, bills, and setting aside money for fuel and food, I’m still able to save about RM400 a month for emergencies.”
Muhammad Haziq — Photos: The Star
Having recently transitioned from a technician to a sales role, Haziq shares that the switch was encouraged by a friend and has proven to be a worthwhile decision.
“With my salary increase, I’ve even applied for the state government’s affordable housing scheme. It’s always been my dream to own a house, and I’m hopeful that dream will come true soon,” he adds.
However, Haziq believes the minimum wage policy should be reviewed every two to three years to keep pace with inflation and rising living costs.
“Living in Johor Baru isn’t cheap. Food and groceries here cost a lot more than in places like Kota Baru. If the country’s economy improves yearly, the government should raise the minimum wage accordingly,” he says.
For veteran security guard R. Raghu, 55, the implementation of the minimum wage policy has also made a big difference.
“I started this job 13 years ago with a basic salary of about RM900. Over the years, my employer gradually raised it, but after February, my basic wage increased to RM1,700,” he says.
“Now with overtime, I’m earning over RM3,000 a month. That extra income really helps, and I’m very grateful to my employer for following the government’s directive.”
Raghu
The new Minimum Wage Order enforced in February, which aims to improve income levels for workers across various sectors, is estimated to have benefited around 4.37 million people nationwide.
Human Resources Minister Steven Sim Chee Keong had cautioned employers against using the revised minimum wage as the starting salary for all employees, including graduates.
Sim had also said that his ministry would continue to engage key stakeholders to fine-tune the new minimum wage structure by considering various factors, including geographical differences and economic conditions across states.
Look at rising prices too
The revised wage of RM1,700, however, still falls short of workers’ actual needs. It remains well below Bank Negara’s 2018 recommendation of a living wage of RM2,700 for a single individual in an urban area, specifically Kuala Lumpur.
The gap is also evident in the Employees Provident Fund’s Belanjawanku 2024/2025 guide – for example, the estimated budget for a single person relying on public transport in Kuala Lumpur is RM1,970 while in Alor Setar it’s about RM1,600 to cover basic expenses like rent, transport and food.
The Belanjawanku Expenditure Guide, which was jointly developed by EPF and the Social Wellbeing Research Centre, Universiti Malaya, provides estimates of minimum monthly expenses needed for a good standard of living.
Employers, too, are under pressure as they try to balance rising operational costs while maintaining wage increases amid global economic uncertainties.
Still, experts and industry leaders say coordinated efforts between employers, industry groups and policymakers are key to making minimum wage increases sustainable.
Last Friday, government-linked investment companies (GLICs) collectively implemented a living wage policy, which ensures that all permanent Malaysian employees now earn above the monthly living wage threshold.
A benchmark living wage has been set at about RM3,100 monthly, which is higher than the RM1,700 monthly minimum wage, they said in a statement, according to Bernama.
This figure is based on a comparative analysis of industry wages and cost of living standards as outlined in the Belanjawanku 2024/2025 Expenditure Guide.
Service crew at a drink outlet in Tasek Gelugor, Penang, Anis An-Nisa Nor Ezam, 25, says the minimum wage of RM1,700 might be enough for her as she is single and lives with her parents.
“I don’t have many commitments so a large chunk of my salary will be used either for personal spending or saving and for my mother,” she shares.
Anis An-Nisa
Anis also thinks that the government can help to ease the burden of the high cost of living by controlling prices of daily necessities and improving the economy.
“A higher minimum wage would be good for school leavers and those who have just started working; perhaps the government could introduce additional cash assistance in the future,” she says.
For Puteri Balqis Mohd Zaidi, 21, who works as a cashier in Kepala Batas in the Seberang Perai Utara district of Penang, the RM1,700 is enough for now but she admits that she is afraid that it won’t be enough in the future considering the high cost of living that has been increasing from time to time.
“For those who live in big cities like George Town, Kuala Lumpur and Johor Baru, RM1,700 would only suffice to pay rent and for their daily meals,” she says.
Puteri Balqis
She recommends that the government look into those who live in big cities who might need a higher minimum wage.
“With new lifestyles and high inflation, RM1,700 won’t be enough even for those who live in rural areas,” she explains.
She says the government must create a new mechanism to encourage employers to pay more while at the same time find ways to improve the economy and increase the cash flow in the country.
The increased minimum wage is not enough and does not make any difference in their lives, say Sabahans who were interviewed by Sunday Star.
This is because of the rising cost of living that comes with this increased minimum wage, says an administration officer for a tour company in Kundasang, Ranau, Sabah.
Albianie Alim, 40, says for a family of five, this wage is not enough, adding that she feels that the prices of everyday goods and groceries are increasing.
“For us, I think we can still live with a RM3,000 household income on bare necessities,” says the mother of three.
Albianie
Instead of raising the minimum wage, the government should first look at lowering prices of essentials and services, because at this point, the increase of prices surpasses the added minimum wage, she says.
Concurring, Julie Aley, 35, who works as an operations coordinator for another tour company in Kundasang, feels that RM1,700 is enough only for a single unmarried person with minimal commitments.
“If you have commitments other than yourself, of course this is not enough and does not make any difference,” she says.
She feels that a decent RM2,000 minimum wage sounds more reasonable, looking at how prices of goods and services continue to rise.
Julie urges the government to look closely into grocery prices (basic daily necessities) and do something about it.
“Control the price. No point increasing the minimum wage if the goods are doubling in price as well,” she stresses.
Shop assistant Davis Kong Boh Hua, 34, from Sibu, Sarawak, also urges the government to do more to address the rising cost of living and price of necessities.
“The minimum wage of RM1,700 is sufficient for me to cover daily expenses as my husband is also working. I have two children. I was previously earning only RM1,500 a month so with an extra RM200, our needs are well covered. I hope our salary will rise in tandem with the hike in the price of goods,” she says.
Twenty-three-year-old Benya Lanting, who works as an assistant kitchen supervisor in Sibu, believes that a more realistic minimum wage is around RM2,000 to RM2,500, depending on the location.
Benya
“For example, for urban areas, a salary of RM2,500 is more appropriate. Apart from increasing the minimum wage, the government can also help by providing basic food subsidies, and increasing the number of affordable houses,” she says.
“The new minimum wage does provide some relief for me, especially in helping to cover the cost of basic necessities such as food, house rent and utilities.
“But, for me, it is still not enough because the cost of living is increasing. For example, house rent and daily expenses.
“In addition, my commitment will increase if I buy a car in the future. Therefore, I need at least RM2,000 a month to be able to live more comfortably,” Benya says.
She also urges the government to widen employment opportunities nationwide, especially for fresh graduates.
“Apart from low wages, another challenge is the lack of stable job opportunities, especially for fresh graduates like me,” says Benya, who has a diploma in Agrotechnology.
This is part of a special report by Media in Arms.
