HAVING a standardise minimum wage structure is the best option for the working class in the country, said Human Resources Minister Steven Sim Chee Keong, as the country marks its highest ever wage ceiling rate at RM1,700 from this month.
Sim said that a uniform wage structure is the best alternative despite calls from certain quarters for regional wage structures as some employers may struggle to maintain the minimum wage of RM1,700.
Sim explained that his ministry’s technical committee had considered various models during the past year, including minimum wage based on geographical areas, before deciding on the latest nationwide rate of RM1,700.
“For now, a uniform rate nationwide appears to be the most suitable economically,” he said after attending a DAP Lunar New Year gathering at the Penang Chinese Town Hall.
Sim, who is also the Penang DAP chairman, said the ceiling rate can help improve worker productivity and alleviate the issue of living costs.
On Friday, the Federation of Malaysian Manufacturers (FMM) had asked that Putrajaya consider state - based or regional models for future minimum wage adjustments to reflect local economic realities.
FMM president Tan Sri Soh Thian Lai, said the federation remained concerned that a nationwide implementation of the RM1,700 minimum wage might have an uneven impact across states and industries.
Sim said that the FMM suggestion is not new and had been implemented before, although only for a short time.
However, he said that the methodology for revising the minimum wage was constantly revamped and that his ministry would continue engaging with all stakeholders to find the best win - win formula for both employers and employees.
“All feedback and input from stakeholders will be considered when we conduct studies to make improvements for future implementations,” he said
Sim said he has obtained feedback from the chairman of the National Wages Consultative Council – a statutory body comprising the government, employers, and employees.
He was informed that all three parties have agreed with the new minimum rate.
The new minimum wage, with a RM200 increase from the previous rate of RM1,500, took effect from Feb 1 across the board.
Malaysia's public and private sectors are under pressure to raise wages to cope with the rising inflation, which is now quite apparent in the food costs and healthcare services.
Veteran unionist K. Veeriah had championed for a minimum wage which is closer to RM2,000 in view of the escalating living costs. - February 3, 2025.
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