Government Raises Minimum Wage to RM1,700: Implications and Reactions
Overview
The recent decision by the Malaysian government to increase the minimum wage from RM1,500 to RM1,700 has sparked discussions among both government and opposition Members of Parliament. While many support the move for its potential benefits to workers, concerns have been raised about the impact on employers and the cost of living.
Support for the Wage Hike
- Teresa Kok Suh Sim (PH-Seputeh) backed the decision, emphasizing the need to consider challenges faced by employers.
- She proposed a contribution of 1.5% to the EPF for foreign workers by employers, with workers contributing 10%.
- This move aims to prevent exploitation of foreign labor and help workers build up savings.
Government’s Stance
- Prime Minister Datuk Seri Anwar Ibrahim announced the wage increase as part of Budget 2025, effective Feb 1, 2025.
- Employers with five or fewer employees will see the new wage take effect on Aug 1, 2025.
Reactions and Concerns
- Tan Sri Muhyiddin Yassin (PN-Pagoh) highlighted the positive impact on workers and GDP contribution.
- Calls were made for clear price control policies and enforcement to prevent unjustified price hikes.
Calls for Caution and Preparation
- Datuk Wan Saifulruddin Wan Jan (PN-Tasek Gelugor) urged the government to consider SMEs’ impact and ensure stakeholders are prepared for the wage increase.
- Other MPs, including Datuk Seri Bung Moktar Radin (BN-Kinabatangan) and Datuk Seri Tuan Ibrahim Tuan Man (PN-Kubang Kerian), raised similar concerns.
Conclusion
The decision to raise the minimum wage in Malaysia has sparked varied reactions and concerns about its implications. While the move aims to benefit workers, careful considerations are needed to ensure a smooth transition for both employers and employees.
The ongoing discussions in the Dewan Rakyat highlight the importance of balancing economic growth with social welfare policies. Stay tuned for further developments on this issue as it unfolds.