GEORGE TOWN: The Human Resources Ministry (KESUMA) will continue engaging with key stakeholders, including employers and employees, to refine the implementation of the new minimum wage policy, which took effect yesterday.
Its minister Steven Sim Chee Keong said these engagement sessions would help fine-tune the new minimum wage structure by considering various factors, including geographical differences and economic conditions across states.
He said KESUMA remains open to suggestions and feedback from all parties and will continue improving the policy through discussions with relevant stakeholders.
“We will take multiple factors into account, including the possibility of implementing different wage levels based on geographical areas and economic conditions. I have already directed a further study on this, which will involve engagement sessions to gather input from all parties.
“We will also examine the feasibility of setting region-specific wage levels to ensure fairness. These considerations will be part of our ongoing efforts to improve the policy,” Sim told a press conference here after attending Penang DAP’s Chinese New Year Open House at the Penang Chinese Town Hall here today, which was attended by thousands of visitors.
Also present were DAP Chairman Lim Guan Eng, Deputy Finance Minister and Tanjong MP Lim Hui Ying, DAP veteran Tan Sri Lim Kit Siang and other state party leaders and assemblymen.
Sim was responding to concerns raised by the Federation of Malaysian Manufacturers (FMM), which had outlined four key considerations for ensuring a balanced implementation of the new minimum wage.
FMM president Tan Sri Soh Thian Lai also suggested that the RM1,700 minimum wage should be applied differently based on states and industries while ensuring that it does not serve as a benchmark for starting salaries across all sectors.
Addressing these concerns, Sim, who is also Bukit Mertajam MP, said the wage hike decision had been extensively discussed within the National Wages Consultative Council (MPGN), which includes representatives from the government, employers and employees.
“This policy was formulated after thorough discussions within MPGN, where all parties reached a consensus on the new wage level,” he said.
“As with any policy, opinions vary, some say the increase is too little, while others feel it’s too much. However, our priority is to strike a fair balance, particularly for workers. Encouragingly, statements from the Malaysian Employers Federation (MEF), FMM, and business chambers indicate that they generally support the implementation of this new minimum wage,” he added.
Asked about FMM’s proposal to implement the wage hike in phases to ease the burden on businesses, especially small and medium enterprises (SMEs), Sim said while the new wage policy is now in effect, smaller companies have been given a grace period until August to comply.
He said the government is committed to balancing the interests of both workers and employers to ensure that the new minimum wage does not become a financial strain on any party.
“The ministry has conducted multiple engagement sessions, including online consultations, to gather feedback from all stakeholders. Beyond the minimum wage, we also hold similar sessions for other labour-related issues, such as employment in the gig economy,” he added.
With the enforcement of the new Minimum Wage Order, approximately 4.37 million workers will now receive a minimum monthly salary of RM1,700, up from RM1,500 previously.
