Malaysia to standardise minimum wage at RM1,050 from January

06 Sep 2018

Minimum wageYesterday, on the 5th of September, the Malaysian government confirmed to raise and standardise the minimum wage for the private sector across the country, which will be implemented on the 1st of January 2019.

The new minimum wage is RM1,050 per month (RM5.05 per hour), up from RM1,000 for the peninsula and RM920 for East Malaysia.

Pakatan Harapan fulfilled one of its election pledges that promised to raise the statutory minimum to RM1,500 within its first five-year term.

In a statement, the Prime Minister’s office said: “The increase of the minimum wage is in line with the country’s current economic situation. We have to be mindful that any drastic increase in wages could cause problems for other industries and affect the country’s competitiveness.

“Therefore, it is more reasonable that the minimum wage is raised in stages in the years to come so industries, especially small business owners, won’t have to close shop due to high operating costs which would lead to unemployment”.

The Prime Minister’s Office went on to say that no subsidies will be provided to employers to aid in transitioning, due to the nation’s fiscal situation.

The government asked that employers and traders are not to raise prices of goods and services once the new minimum wage is implemented, calling on the relevant ministry to monitor the situation.