Ministry to meet bosses over new minimum wage policy


GEORGE TOWN: The Human Resources Ministry will continue to engage with employers and stakeholders so that the implementation of the new minimum wage policy can be improved from time to time, says its minister Steven Sim (pic).

He said feedback from all parties involved and the engagement sessions are necessary so that factors such as the geographical differences are taken into account before any new changes are made.

“We have platforms for them to suggest their input, including in person and online. It is our standard operating procedure to get feedback from the public and the various sectors involved,” he told reporters at the annual Penang DAP Chinese New Year open house at the Penang Chinese Town Hall here yesterday.

Starting Feb 1, an estimated 4.37 million workers in Malaysia will be getting a minimum monthly wage of RM1,700, up from RM1,500, following the enforcement of the Minimum Wages Order.

This applies to bosses with five or more workers, and professional sector employers, regardless of their workforce size.

For businesses with fewer than five employees, the new rate will take effect on Aug 1.

Sim said the ministry found that implementing a standardised minimum wage nationwide is the suitable approach for now.“So, having the same rate (RM1,700) across the country seemed most suitable and compatible,” he said.

He added that much thought was put into this before the new policy was introduced.

However, Sim said the ministry would carry out further studies and take into consideration all the input from concerned parties to make further improvements.

He said this in reference to the call made by the Federation of Malaysian Manufacturers’ (FMM) for the government to adopt a more targeted approach in future when implementing the minimum wage policy.

FMM president Tan Sri Soh Thian Lai had said members were concerned that there would be uneven impact from the new minimum wage across states and industries, citing varying economic conditions and costs of living between states and regions.

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