The Malaysian Employers Federation (MEF) has called on the government to implement the proposed RM1,500 minimum wage for the private sector nationwide gradually. MEF executive director Datuk Shamsuddin Bardan (pic) said there were many factors that had to be taken into account before the minimum wage of RM1,500 is implemented and it must be sustainable. He was commenting on reports quoting Deputy Human Resource Minister Datuk Mahfuz Omar clarified that the minimum wage was not one of the Pakatan Harapan government’s promises to be fulfilled within 100 days after it won the General Election in May. Datuk Shamsuddin said the minimum wage was set for a review this year and the new rate was supposed to be enforced effective July 1. “The mechanics into how the government will subsidise 50 per cent of the increase of the minimum wage in the private sector is still not made clear yet,” he said.
Datuk Shamsuddin added that the streamlining of wages between the states in peninsular Malaysia and East Malaysia has yet to be completed. “It will be too much of a pressure for the companies in Sabah and Sarawak to catch up with the minimum wage of RM 1,500 now, so doing it gradually will be better,” he said.
Human Resources Minister, M. Kulasegaran has said earlier that the new minimum wage quantum for the private sector would be announced in August this year after it gets the approval of the Cabinet. In its manifesto for the 14 General Election, Pakatan Harapan has pledged to equalise and increase monthly minimum wages to RM1,500 by the first term and reviewable every two years, with government to contribute half of the pay hike. The current minimum wage for the private sector is RM1,000 in Peninsular Malaysia, and RM920 in East Malaysia.
Source: Malay Mail