← Back to list

The Minimum Wage Debate Rages On!

Oct 21, 2024

Budget 2025’s minimum wage hike continues to be a major talking point.  

The Malaysian Trades Union Congress has welcomed the decision to raise it to RM1,700 a month. 

However, its Secretary General Kamarul Baharin Mansor told us it should be gradually increased further, to match the minimum wage for civil servants that exceeds RM2,000.  

University Malaya economist Dr Goh Lim Thye aslo backed the new wage, saying it will help stimulate domestic consumption, which is a major contributor to our GDP.  

He also beleives it can boost productivity, as higher wages will incentivise workers and reduce turnover rates. 

The new wage takes effect in February next year, but small businesses will be given a six-month deferment.  

However, the opposition leader has proposed a one-year postponement for SMEs, to give them more time to prepare for the new wage.  

Meanwhile, employers have been reminded that the minimum wage is NOT meant to be the starting salary for all employees including graduates.  

According to the HR Ministry the minimum wage is intended for workers with lower academic qualifications, including workers in dirty, dangerous and difficult jobs,  

--