‘New minimum wage unfair to local workers and employers’


PETALNG JAYA: The newly gazetted minimum wage of RM1,200, which will cover 56 cities and municipal councils from Feb 1, will be unfair to local workers and employers, says the Association of Employment Agencies Malaysia.

Employers were already providing accommodation, transportation, annual immigration levy, insurance and food to foreign workers, which would push the cost of products and services more, it said in a statement.

The gazette was released by the Human Resources Ministry on Jan 10 under the Minimum Wages Order 2020.

It states that the minimum wage rate payable to an employee who works within the 16 city councils and 40 municipal councils will be RM5.77 an hour or RM1,200 monthly.

An earlier announcement by the Human Resources Ministry had prompted a backlash from manufacturers and bosses, many of whom questioned the timing as well as the criteria for the list of cities and towns chosen.

The association also questioned whether foreign workers working in the selected cities would be earning more than their local counterparts.

Malaysian Employers Federation executive director Samsudin Baradan had lamented that the cost of doing business would likely rise with employers having to bear the increase.

Get 20% OFF The Star Digital Access

Monthly Plan

RM 13.90/month

RM 11.12/month

Billed as RM 11.12 for the 1st month, RM 13.90 thereafter.

Best Value

Annual Plan

RM 12.33/month

RM 9.87/month

Billed as RM 118.40 for the 1st year, RM 148 thereafter.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Nation

Shah Alam Line: Govt to seek audience with Selangor Ruler to provide explanation, says Transport Minister
Fire razes four shoplots in Penang's Jalan Perak
Govt offers 10% home purchase discount during Asean Real Estate Conference 2026
Johor Polls: Muhyiddin warns low Malay voter turnout could determine election outcome
Johor Polls: Fahmi cautions voters over digital sabotage, fake accounts
Malaysia assures Belgium that South China Sea will remain open
Malaysia seeks stronger, forward-looking partnership with New Zealand, says High Commissioner
Lorry driver, assistant killed after crashing into stalled car in Kulai
Johor Polls: Come home to vote, says Fahmi
Johor polls: Indian community's votes key for Pakatan victory, says Gunaraj

Others Also Read