Penang: 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.
According to BERNAMA News Agency, 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,” Sim stated at a press conference following Penang DAP’s Chinese New Year Open House at the Penang Chinese Town Hall.
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 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, noted that 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.
Sim added that opinions about the wage increase vary, with some considering it too little and others too much. However, the priority remains 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.
When asked about FMM’s proposal to implement the wage hike in phases to ease the burden on businesses, especially SMEs, Sim explained that while the new wage policy is now in effect, smaller companies have been given a grace period until August to comply. He emphasized that 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.
Sim also mentioned that the ministry has conducted multiple engagement sessions, including online consultations, to gather feedback from all stakeholders. Beyond the minimum wage, similar sessions are held for other labour-related issues, such as employment in the gig economy. 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.