‘Wage issue to be settled by June’

PUTRAJAYA: The issue surrounding the implementation of the minimum wage will be settled “once and for all” by next month, says Datuk Seri Anwar Ibrahim.

The Prime Minister said this was because the minimum wage has been very difficult to implement across the board.

“We will settle all the uproar pertaining to the minimum wage at the Cabinet meeting next month once and for all,” he said during his speech in conjunction with the Labour Day celebration here at the Putrajaya International Convention Centre yesterday.

On May 1 last year, the Malaysian Minimum Wages Order 2022 came into effect, with a minimum wage of RM1,500 for employees.

However, the government postponed the implementation of the RM1,500 minimum wage for employers with fewer than five employees from Jan 1, 2023, to July 1, 2023.

Although Malaysia enjoyed high productivity, Anwar said there were employers and investors who disregarded employees’ interests and just focused on profits.

As such, the government has to intervene to ensure the rights of workers are upheld, he said.

He further acknowledged the need to increase wages among workers in Malaysia, which should not be disputed by any employer, economist or even minister.“We don’t want anyone to dispute this matter. We have a responsibility to increase wages in the civil and private sectors.

“There are responsible employers, but not all are the same. Some employers record high revenues, up to RM1bil but do not increase wages.

“But there are those who think about the welfare of the workers, their children’s education, and providing housing. This is how it should be done,” he said.

He cited his first stint as finance minister to illustrate how Tenaga Nasional Bhd was privatised and went on to make huge profits.

He said that TNB, as a private company, managed to increase wages, establish housing for workers, and even establish a university.

Sunway University professor of economics Dr Yeah Kim Leng said with the economy expected to sustain a 4-5% growth rate and an unemployment rate close to the pre-pandemic level of 3.5%, there is a strong impetus to fully implement the minimum wage without exception.

“It will help to ease the plight of low-wage earners and support domestic consumption while the affected employers have been given sufficient grace periods to prepare for the full implementation of the minimum wage,” he said.

Socio-Economic Research Centre executive director Lee Heng Guie said the postponement was to allow small businesses more time to manage their finances given the weak business recovery in addition to bearing increased operating and business costs.

“The implementation of a higher minimum wage for small businesses will impact them in the current weakening economic and business conditions amid still high costs of doing business.

“Employers in small states and towns as well as sub-urban areas will be impacted more.

“In fact, the improved labour market condition has compelled some businesses to pay higher wages to hire new workers and retain existing workers,” he said.