PUTRAJAYA: The sum of RM2,000 was determined as minimum wage as it was a middle ground that could benefit both employers and workers.
It was not a figure that was arrived at arbitrarily, says National Wages Consultative Council chairman Tan Sri Zainal Rahim Seman.
He said Malaysia cannot afford to lag behind developed countries.
“Implementation challenges are inevitable. When we first introduced the minimum wage of RM900, there were problems as well.
“Such challenges are to be expected, but it is our responsibility to address them through effective enforcement and implementation.
“The figure is based on research conducted by academics and research teams.
“It is intended to establish a reasonable rate without placing an excessive burden on any party,” Zainal told newsmen after a media conference by the Human Resources Minister Datuk Seri R. Ramanan.
He said wages must provide workers with a reasonable standard of living, including adequate financial comfort and purchasing power.
The former ministry secretary-general, who was involved in the introduction of minimum wage, said 21 engagement sessions were conducted nationwide prior to the Budget 2027 announcement.
“We also compared median wages as part of our policy review. We found that although wages have increased following previous reviews, the adjustments have not placed an excessive burden on employers, partly because minimum wages are reviewed every two years rather than annually.
“We also consulted employers, workers, trade unions and academics.
“The government has made a concession for businesses with annual turnover of RM50mil or less by exempting them from the implementation of the RM2,000 minimum wage.
“These businesses may continue paying the existing minimum wage of RM1,700.
“We hope employers will voluntarily implement the RM2,000 minimum wage if they have the financial capacity to do so,” he said.
Zainal said the increase in minimum wage to RM2,000 was a step to support the government’s objective of increasing employees’ compensation to 40% of Malaysia’s GDP by the end of the 13th Malaysia Plan.
“At present, we are at 32% to 33%. If Malaysia is to become a developed, high-income nation, we cannot afford to fall behind.
“The public sector has already undergone changes in its salary structure. The private sector similarly needs government guidance on appropriate starting salary levels,” he said.
From June next year, the government will also introduce a minimum monthly wage of RM2,500 for semi-skilled workers and graduates as part of reforms to the workers’ income framework.
These change were announced by Prime Minister Datuk Seri Anwar Ibrahim when tabling Budget 2027 on Oct 9.
