Minimum wage in Malaysia - Opinions

As promised, I provide you an overview on the rather expected comments of local politics and industry leaders in regard to the minimum wage policy here in Malaysia. So far, I could not really find any opposition, as such comment would become a death call for any politician before the election. At least the employers organisation was not overly excited, but also this reaction was quite expected.

Trade Unions 

Khalid Attan MTUC

 "Minimum wage is just the start, but the figures doesn't just stop there. It is a start and should be revised every two years," Malaysian Trade Union Congress president Khalid Attan told at a press conference here today. (Malaysian Insider 2012: MTUC welcomes Minimum Wage Announcement) 

 

Employers 

Shamsuddin Bardan, MEF

“The Malaysian Employers Federation executive director Shamsuddin Bardan says a longer period for the implementation of the minimum wage was needed as to adjust the salary of workers from current levels to the new rate without an accompanying increase in productivity and operational costs.” (The Star 5 May 2012: More People welcome minimum wage policy than not)

Government

Najib Razak, Prime Minister MY

“The introduction of the minimum wage is a historic moment for Malaysia. The lowest paid will now be guaranteed an income that lifts them out of poverty and helps ensure that they can meet the rising cost of living. In making their recommendations, the National Wage Consultation Council carefully assessed the economic conditions. The proposed rates take into account the needs of businesses, while ensuring that no Malaysian is left behind in the country’s economic progress.” (New Straits Times 1 May 2012: Minimum wage cheer for workers)

Opposition

Lim Guan Eng, DAP

"Economic prosperity and a higher standard of living requires a RM 1,100 minimum wage to be accompanied by measures of accelerated structural reforms," the Penang chief minister said in his May Day speech this morning. (The Malaysian Insider 2012: Minimum wage useless without raising competitiveness says Lim Guan Eng) 

Even in the last statement Lim Guan Eng gives enough credit to the idea of a minimum wage to support the overall implementation. From my current experience with local politics, I would agree with him as measures of accelerated structural reforms have not been brought up by the government. However, a really tricky issue was mentioned in this commentary, which evolves from the question of determining the exact wage floor. While the government finally concluded that RM 900 would be sufficient, the opposition tends to look at RM 1,200 and more. 

In my next post, I will give the research behind this decision some thought.

Stay tuned.