Malaysia

‘Govt postponed minimum wage for micro-businesses after feedback’

Ministry had received 23 applications requesting delay, says human resources minister

Updated 3 years ago · Published on 02 Mar 2023 1:02PM

‘Govt postponed minimum wage for micro-businesses after feedback’
V. Sivakumar says that while suggestions for the nation to employ a progressive wage model are good, deeper studies will have to be conducted to align the concept with the country’s economic and employment situation. – Information Department pic, March 2, 2023

by Qistina Nadia Dzulqarnain

KUALA LUMPUR – Putrajaya’s decision to push back the implementation of the RM1,500 minimum wage for companies with less than five employees was made after feedback from employers in several industries, said Human Resources Minister V. Sivakumar (Batu Gajah-PH). 

Addressing the Dewan Rakyat today, Sivarasa said that the ministry had received 23 applications from various sectors and organisations requesting for a delay to the enforced minimum wage. 

“The government’s call to suspend the minimum wage implementation from January 1 to July 1 for micro-enterprises was due, in part, to memoranda from numerous parties involved who said that they will have to bear additional burdens if the minimum wage is enforced. 

“They also said that the minimum wage will affect their production and operation costs as well as the company’s overall services,” he said during question time for oral answers. 

He added that the ministry hopes the delay will allow micro-businesses to stabilise their financial needs, which will help elevate their economic conditions. 

Following Sivakumar’s announcement of the suspension on Monday, the Malaysian Employers Federation praised the move while thanking the ministry for listening to stakeholders. 

Previously, all employers were supposed to begin to pay their staff salaries in accordance with the new minimum wage implemented from May 1 this year. 

Meanwhile, Sivakumar also said that while suggestions for the nation to employ a progressive wage model are “good”, deeper studies will have to be conducted to align the concept with the country’s economic and employment situation. 

“The government is also in the midst of analysing Bank Negara Malaysia’s analysis in 2018 which stated that the living wage for a single person should be RM2,700; for a couple, it should be RM4,500; and for a couple with two children, it should be RM6,500,” he said. 

Sivakumar said this in response to a supplementary question by Datuk Awang Hashim (Pendang-PN) on why the government appears to not be considering upholding a progressive wage model in Malaysia. 

Last week, the minister’s fellow DAP lawmaker M. Kulasegaran (Ipoh Barat-PH) had previously raised in the lower House the progressive wage model Pakatan Harapan was studying in 2018 during its time as federal government. 

He also highlighted the coalition’s promise, as stated in its manifesto, to increase salaries by RM100 annually for those on minimum wage. – The Vibes, March 1, 2023

Related News

Malaysia / 3y

Higher pay key to solving local manpower crisis: Sivakumar

Malaysia / 3y

HR Ministry’s new chief secretary to conduct internal clean-up

Malaysia / 3y

MACC to possibly question political leader in HR Ministry probe

Malaysia / 3y

[UPDATED] HR Ministry probe: MACC has not summoned me, says Sivakumar

Malaysia / 3y

HR Ministry probe: give MACC time, do not speculate, Anwar urges

Malaysia / 3y

Govt to ensure enough migrant workers before resuming quota applications: minister

Spotlight

Malaysia

MP calls on US to take legal action against Hadi over ‘plot to topple government’ statement

By Ian McIntyre

Malaysia

Malaysia needs to master its own technology - PM Anwar

Malaysia

RM2.48m lost daily to investment fraud syndicates since 2023

Malaysia

Rising bond rates are a sign of rising debt

Education

Selangor to close schools if API readings exceed 200

Malaysia

Loke: Keep Anwar as PM to complete reform agenda

Malaysia

Investigations into political leaders not driven by spite or political payback - PM

You may be interested

Malaysia

Court rejects zoom route, gives prosecution more time to serve Yusoff Rawther

Malaysia

Zelensky says Russia ready to negotiate after US peace push

Malaysia

Why examining AirAsia’s finances may serve public interest

Malaysia

Helicopter crashes during flying doctor service mission in Sarawak

Malaysia

Anwar to lead Sabah, Sarawak leaders in key MA63 meeting

Malaysia

Six face court over alleged rape of same 15-year-old girl in Perlis

Malaysia

Melaka CM hints at state assembly dissolution being ‘two Fridays’ away

Malaysia

Malaysia targets up to 1.2% points in annual GDP growth from AI