Sep 29, 2011

Malaysia - Minimum wage by year’s end, says minister


PUTRAJAYA, Sept 28 — The government hopes to implement the minimum wage policy by the end of this year, the human resource minister said today.

“The government hopes a minimum wage rate can be announced by the end of the year, so the council has about two-and-a-half months to propose a suitable (minimum wage),” Human Resource Minister Datuk Dr Subramaniam Sathasivam (picture) told reporters today following the appointment of National Wage Consultative Council members at his ministry here.

The council, consisting of 25 members from various sectors, functions as an independent body to review and set a minimum wage in the country based on tripartism between the government, employees, and employers.

“The period for this is short and challenging and the ministry is aware of the situation and has provided input to the council,” he added.

Dr Subramaniam said that although the council is a first of its kind in the country, steps have been taken before “such as the setting up of a technical committee comprising of social, economic and statistical experts to conduct initial investigations and to engage the public”.

He added that the ministry had appointed the World Bank to conduct studies on minimum wage and mobility in the country.

“I believe and am confident that the groundwork done will aid the council to set the minimum wage more effectively,” Dr Subramaniam said.

“I am also confident that those appointed are of the right calibre to run such an important platform to constructively discuss the proposal so employees will receive suitable wages, increase their spending power, increase their productivity and reduce our dependency on foreign labour,” he added, pointing out that council members were free from political affiliations to prevent politicisation of the issue.

Dr Subramaniam also said the minimum wage must be set reasonably, and must not be too high or too low.

“If it is too high, it will burden the employers and affect businesses. This will make it hard to create job opportunities.

If it is too low, it won’t reach its objective. It must be reasonable and based on the current economy. The biggest challenge here is to come up with a reasonable rate.”

Dr Subramaniam hoped the decision made by the council would not be based on personal emotions or perceptions, but on facts.

“It is very important for the long run and to set up a system, as we are laying the foundation for the future of the council.”

By Lisa J. Ariffin



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