Announcement

Ministry of Human Resources will be organising Minimum Wage Laboratory Exercise with the collaboration of World Bank on 8 to 14 February 2011 at Putrajaya International Convention Centre (PICC).

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Y.B. Minister Prelude

Ladies and gentlemen,
Salam 1Malaysia,

In line with the "1Malaysia: People First, Performance Now" concept, the Government, through the Ministry of Human Resources, is conducting a feasibility study on implementation of a national minimum wage for private sector workers in Malaysia. The study is also in tandem with the government’s vision towards realising a new economic model founded on high-income economy and improving the living standards of low income households.

Undeniably, there are Malaysians who live below the poverty line income level (PLI) as many workers earn wages less than RM750 per month. Analysis of average wages offered by employers participating in the ministry’s Fast Track Programme from October-December 2009 is shown in the following table Fast Track: Average Wages and Allowances for Local Workers According to Manufacturing Sector Sub-Industry

It is noted that the average wages for five manufacturing sub-sectors i.e. Electric and Electronics, Furniture, Plastics, Gloves and Textiles was RM626.76 per month for basic wages and RM762.20 per month for gross wages including fixed allowances.

These lower income groups, especially in urban areas, are facing hard times to make their ends meet due to ever-increasing cost of living, particularly on the back of price hike in daily necessities. The minimum wage regulation should be at least able to lessen the severity of their hardships.

However, some quarters argue that the setting up of the national minimum wage would lead to negative consequences as it could distort market forces. In addition, the minimum wage could also cause job losses in lower occupation categories where demands still exist for vulnerable groups especially for those working in rural areas. This in turn could result in higher unemployment rate for the country.

We have provided several useful website links for your further references on the minimum wage implementation. Do click them.

We welcome your views, opinions, ideas, suggestions and comments to provide us with better insights in formulating policies and strategies pertaining to the minimum wage. Such feedbacks can be channelled via this blog or by e-mail at gaji_minimum@mohr.gov.my.

Your invaluable input is very much appreciated. Thank you.

Datuk Dr. S. Subramaniam
Menteri Sumber Manusia







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1. To develop a workforce that is productive, informative, discipline, caring and responsive to the changing labor environment towards increasing the economic growth and hence create more job opportunities.

2. To encourage and maintain conducive and harmonized industrial relation between employers, employees and trade unions for the nation's economic development and wellness of people.

3. To uphold social justice and ensure harmonious industrial relations through solving industrial dispute between employer and employee and awarding collective agreement.

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