When reviewing the minimum wage, the Malaysian government should look at the issue from multiple angles. There have been a lot of price hikes recently, and it needs to account for all of them. For example, increased wages mean that goods and services cost more.
Furthermore, the head of a private economic organization in Malaysia, Tan Sri Soh Thian Lai, has requested the government to engage in discussions with the appropriate individuals to ascertain the sentiments of companies, in order to find a solution.
He told the Business Times of the New Straits Times that the government should look over the minimum wage order in a more thorough way. He emphasized the many cost increases that the industry is experiencing this year and the importance of engaging with stakeholders to understand business sentiments and what is considered an acceptable increase given the current circumstances.
The National Pay Consultative Council Act of 2011 requires a review of the pay order at least every two years; the council conducted the most recent review in May 2022. This review resulted in raising the minimum wage from RM1,100/RM1,200 (US$232.66/US$253.81) to RM1,500 (US$317.26).
Aimi Zulhazmi Abdul Rashid, an Associate Professor and economic analyst at the Universiti Kuala Lumpur Business School, stated that they implemented the minimum wage policy to offset market factors that contribute to the increase in the cost of living. He also stated that we should use the rate of inflation as a starting point for comparing things.
As required by the National Wages Consultative Council Act 2011, Human Resources Minister Steven Sim said in Dewan Rakyat, the lower house of Malaysia’s two-house Parliament, that the government will review the minimum wage this year. The review will look at the views of all parties involved, such as companies, workers, and socioeconomic data.
