Minimum wage increase of RM100 is reasonable, says Teresa Kok

Last update: 24/12/2019

KUALA LUMPUR, Dec 24  -- The minimum wage increase of RM100 to RM1,200 effective Jan 1 in 57 cities and towns from RM1,100 currently is reasonable and will not cause any significant impairment to the bottom line of employers.

Primary Industries Minister Teresa Kok said the ministry supports the increase as it is in tandem with the higher living costs in major cities and towns and it is consonant with the rate of current inflation.

“Indeed it is an accepted reality that one cannot hire a full-time staff for a salary of below RM1,200 in many many cities and urban areas in Malaysia these days. The move to increase minimum wages is also a calculated effort to alleviate urban poverty of both local and migrant workers.

“It will also encourage more Malaysians to stay and work in Malaysia,” she said in a statement today.

Kok said furthermore, under the principle of equality, the increase of RM100 to the wages for migrant workers is in line with keeping with international standards, primarily to avert discrimination of wages and treatment between the locals and migrant workers.

Under Pillar 3: “Spur Sustainable and Equitable Economic Growth” in the Pakatan Harapan’s manifesto, the party pledged to increase the minimum wage to RM1,500 within a period of five years.

Thus, she said the increase of RM100 for the employees in the urban areas is amongst the initial steps taken by the government toward this direction.