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Standardised minimum wage rate for whole nation best approach for now: Steven Sim | Scoop
Human Resources Minister Steven Sim speaking to the reporters at the sidelines of the Penang DAP's Chinese New Year open house event held at the Penang Chinese Town Hall. – R. Dineskumar/Scoop pic, February 2, 2025
News

Standardised minimum wage rate for whole nation best approach for now: Steven Sim

HR minister responds to FMM’s suggestion for adjustments to consider state or regional-based models to reflect local economic realities

Main Author Image
R. Dineskumar
Updated
5:15 PM MYT

 

GEORGE TOWN – The government believes that a standardised rate for the entire country is the best approach to be adopted in enforcing minimum wage rates, said Human Resources Minister Steven Sim amid suggestions of state or regional-based models which consider local economic conditions.  

Sim said that such implementation models had been enforced before but were short-lived.   

”(The government) have considered various models in implementing the latest minimum wage rate,” he told the reporters at the sidelines of the Chinese New Year open house event hosted by Penang DAP at the Penang Chinese Town Hall, here.  

“However, we felt that it is more suitable for a standard rate to be implemented nationwide for the time being.  

“But we will continue conducting studies as required by law for the next minimum wage. All inputs from the stakeholders will be taken into consideration for improvements in future implementations.”  

Sim was responding to the Federation of Malaysian Manufacturers (FMM) president Tan Sri Soh Thian Lai who suggested that future minimum wage adjustments should consider state-based or regional models to reflect local economic realities more effectively.  

In a statement, Soh also said that FMM is concerned that the implementation of the new RM1,700 minimum wage, which took effect yesterday, may have an uneven impact across states and industries – citing varying economic conditions and costs of living between states and regions.  

He also noted that the “one-size-fits-all” approach adopted by Putrajaya could place additional strain on businesses, particularly small and medium enterprises (SMEs) operating in less developed areas.  

Soh also called upon the National Wages Consultative Council to further enhance stakeholder engagement, and conduct comprehensive studies on the socio-economic implications of future minimum wage policies.  

However, Sim pointed out various sessions were held prior to the implementation of the current minimum wage rate, either through physical or online modes.  

He also stressed that it has always been the standard operating procedure (SOP) of the HR Ministry to have stakeholder engagements for every single order of business, which included formulation of labour laws.   

“For example, we have had several engagement sessions on the gig workers bill and I intend to conclude all these sessions in a mega town hall that will take place in a week or two from now,” he said.

When asked whether the employers agreed with the new RM1,700 rate, Sim said that he was informed by the chairman of the National Wages Consultative Council that the council unanimously decided on fixing this rate.   

The council is a tripartite body comprising representatives from the government, employers and workers. – February 2, 2025  

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