Minimum wages for the private sector
Focus Malaysia 13 Sep 2018 20:35
MENTERI SUMBER MANUSIA MALAYSIA
(Minister of Human Resources)
MINIMUM WAGES FOR THE PRIVATE SECTOR
1. The Government on 5th September 2018 decided for the first time ever to implement a standardized minimum wage rate throughout the country. The decided rate is Rm1,050, effective 1st January 2019. The PH manifesto promised that within the first 100 days of our administration, a standardized minimum wages throughout the nation will be implemented. We achieved it. The second part of our promise, in Promise number 34 of the manifesto, is to raise the minimum wages to RM1,500 a month within the first term (within 5 years) of PH administration. PH government is committed to this agenda.
2. Before making this difficult decision, the Government had to assess the overall economic and financial situation in the country apart from improving our investment climate. As reported by Bank Negara Malaysia, in their Quarterly Bulletin released on 17 August 2018, the Malaysian economy expanded at a slower pace of 4.5% in the second quarter of 2018 as compared to 5.4% in the first quarter 2018. In addition, the foreign direct investments (FDI) registered a lower net inflow of RM2.8 billion in second quarter 2018 as compared o Rm12 billion in net inflow in the first quarter 2018. All these are worrying factors which we have to address first besides the financial mess left behind by the previous government.
3. The decision to only increase RM50 for workers in Peninsular was indeed a painful decision which was not meant to be little the contribution of workers especially the B40 group. This is not the end of the journey of minimum wages for Malaysia. We have been in power for the past 4 months only and we are determined to achieve the promises made in our manifesto including the minimum wages agenda by the end of our term. As far as minimum wages is concerned, employers are required to be prepared for an increase in minimum wages over the next years. Please give the government some time to sort things out. Minimum wages agenda is certainly an enigma for the nation and has given me sleepless nights over the last few weeks.
MINISTER OF HUMAN RESOURCES
13 SEPTEMBER 2018