HUMAN Resources Minister Steven Sim has urged employers not to treat the statutory minimum wage of RM1,700 as the default starting salary, highlighting that it is intended only as a reference point for the most basic, low-skilled roles.
Addressing the signing ceremony of the 14th Collective Agreement (CA) between Genting Malaysia Berhad (GENM) and the Genting Malaysia Workers’ Union at Wisma Genting, Sim underscored the government’s provision of salary guidelines for skilled professions, including engineers, journalists, and graphic designers, to facilitate fair and informed wage negotiations.
“These guidelines are not mandatory, but they are designed to facilitate salary negotiations and ensure that new employees are not offered wages that are too low. The statutory minimum wage must still be respected,” Sim said.
He also drew attention to government measures such as the Progressive Wage Policy and corporate subsidies, which enable employees to earn higher wages, providing an additional RM200 to RM300 in income per worker.
The signing ceremony was attended by GENM Deputy President Lee Thiam Kit, Chief Operating Officer (RWG) Aaron Chia, Senior Vice President of Human Resources Tan Boo Chuan, Vice President of Labour and Compensation Yun Leong Yu, and President of the Malaysian Council of International Labour Unions (UNI-MLC), Datuk Mohamed Shafie BP Mammal.
Sim praised GENM for setting a progressive benchmark with its new CA, which raised the minimum starting wage to RM1,800, surpassing the statutory minimum.
“This CA sets a good precedent by not merely using the statutory minimum as the starting salary. By setting it at RM1,800, the approach is progressive. GENM has also implemented a 10 per cent salary adjustment, the highest in the union’s history since 1974,” he said.
He highlighted the efficiency of the negotiation process, which involved nearly 10,000 employees and concluded in just three months over four meetings.
“This is a real example of mutual benefit. The wage increase is clear, with the minimum wage rising by 11 per cent, along with mid-range salaries,” he added.
Emphasising his commitment to employee welfare, Sim said the Ministry of Human Resources plays a unique role in protecting workers’ interests.
“Since day one in office, I have been determined to stand with workers. There are many ministries overseeing the economy and industry, but only one looks after workers. If this ministry does not stand with them, where else can they turn?”
The CA incorporates a 10 per cent salary adjustment for eligible employees, with special payments covering August to October 2025.
It also provides revised allowances, expanded medical and outpatient benefits for employees and their immediate families, improved transport reimbursement for medical treatment, enhanced death benefits, and adjustments to annual salary increments.
These comprehensive improvements reflect GENM’s commitment to competitive compensation and employee welfare.
The new Collective Agreement takes effect from August 1 and will remain in force until July 31, 2028, covering all confirmed employees. - December 1, 2025
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