Malaysia’s Ministry of Human Resources has submitted a proposal to extend the duration of the Progressive Wage Policy (PWP) pilot project beyond the originally planned 12 months. Deputy Minister Datuk Seri Abdul Rahman Mohamad said that the proposal was discussed in a Cabinet meeting. He added that details could not be revealed as the Cabinet has not made an official announcement.
Speaking at the Dewan Rakyat, Datuk Seri Abdul Rahman said the PWP pilot project, which opened for registration in June, aims to increase the wages of Malaysian employees earning between RM1,500 and RM4,999. The project covers local workers in five key sectors, including construction, manufacturing, wholesale and retail trade (including motor vehicle and motorcycle repair), information and communication, and professional, scientific, and technical activities. Under the project, selected companies will receive incentives, with a maximum of RM200 per month per employee for entry-level workers (those who have been with their current company and position for less than a year). Employees who have been in the company for over a year will receive a maximum of RM300 per month per employee.
Datuk Seri Abdul Rahman said that a total of 776 companies had applied to participate in the pilot project as of October 3. He also noted that the Cabinet has discussed the issue of wage disparities between different sectors and between workers in Peninsular Malaysia and the Bornean states. Key points of discussion included the eligibility of companies to participate in the PWP, proposed entry-level salaries, annual increments, and cash incentives for different categories of workers, he said.
