Malaysia Will Have A New Minimum Wage Next Year

In a report by Bernama yesterday, 12 October, Human Resources Minister Datuk Seri Richard Riot Jaem, informed that the National Wages Consultative Council is currently working on reviewing the Minimum Wages Order 2016, to set the new rates for Peninsular Malaysia, Sabah, Sarawak, and Labuan.

"We know that the minimum wages order must be reviewed at least once in two years. The review will look at the ability of the employer to pay the minimum wage which is a responsibility that is very challenging to ensure that the minimum wage policy meets all objectives," said Riot, as reported by Bernama.

"The main reason for the income gap is the median wage, which is the difference in employers' capability and capacity in both parts of the country, to pay wages to their employees and that's why the minimum income is lower in East Malaysia," he explained.

This latest review will take into consideration the cost of living, operation costs that has to be borne by employers, and the plea of people living and working in Sabah, Sarawak, and Labuan to increase minimum wage and help them better deal with the rising cost of living there.

In 2016, the minimum wage was revised and raised to RM1,000 in Peninsular Malaysia and RM920 in Sabah, Sarawak, and Labuan.

"One day, the salary in both categories will be on a par (with each other). This is still being studied by the Minimum Wage Technical Committee and the council before it is tabled to the Cabinet," added Riot.

There are two categories of poverty in Malaysia, namely;

1. Extreme Poverty: Any household that fails to fulfill basic needs such as food, clothing, shelter, and earn an average monthly incomes of less than RM460 in Peninsular Malaysia, less than RM630 in Sabah and less than RM910 in Sarawak is considered poor.

2. Poor: The households that fall under this category are most often the ones that can afford the most basic necessities food, shelter, and clothing but are unable to afford healthcare and education. Households with average monthly incomes of less than RM760 in Peninsular Malaysia, less than RM1,050 in Sabah, and less than RM910 in Sarawak are defined as poor.