↑ Top

Forum Session 1

Forum Session 1

Minimum Wage Policy in Malaysia: Its Impact and the Readiness of Employers

The setting of the minimum wage by the Government every two (2) years is in line with the provisions of the National Wage Consultative Council Act 2011 [Act 732] which stipulates the need to review the minimum wage every two years. The revision and setting of the minimum wage is expected to make wage rate in this country more competitive, thus comparable to other countries in the Southeast Asian region.

The setting of a reasonable minimum wage is expected to be able to increase the motivation and productivity of employees and subsequently increase the company's income. Employees can also increase the amount of their Employee Provident Fund’s (EPF) contributions and be able to achieve a higher amount of savings for retirement. For the purpose of social security, contributions are also made to the Social Security Organization (SOCSO) to ensure the social security protection for the employees and their dependents in the event of occupational accidents or injuries.

This minimum wage policy is important to be implemented to ensure that no group of workers are oppressed with very low and unreasonable wage rates, especially workers with no education or lack of knowledge who work in elementary occupations. This will help them to have a reasonable income and better life.

The setting of minimum wage is one of the Government's effort to care for the welfare of workers, especially the B40 category who are pressed with difficulty in continuing to live on after the COVID-19 pandemic. The increase in the cost of living, especially when the country is dealing with the COVID-19 widespread, causes people to be stressed and burdened. Therefore, the setting of the minimum wage will indirectly increase the purchasing power of the people, thereby improving their standard of living. In addition, employers are also urged not to make the minimum wage as the standard wage. Employees deserve to be paid commensurate with the qualifications or work that they perform. This effort is also in line with the Government's aspiration to make Malaysia a country that progresses sustainably in line with fair, equitable and inclusive economic distribution.

For Forum 1, experts with different backgrounds and experiences will share their knowledge and perspectives regarding the implementation minimum wage. Since the new minimum wage rate has just been implemented, this is the right time to discuss the impact and level of readiness of employers in this country regarding the implementation of the minimum wage.



Ms. Hajah Nazaria binti Baharudin
Deputy Chief Statistician (Social Programme and Technical Development)



1.  Professor Emeritus Tan Sri Anuwar bin Ali 
     University of Cyberjaya
     Presentation slide: 

2.  Datuk Hj. Shamsuddin bin Bardan 
     Executive Director
     Malaysian Employers Federation (MEF)
     Presentatation slide: 

3.  Mr. Mohd Effendy bin Abdul Ghani 
     Malaysian Trade Unions Congress (MTUC)

4. Dr. Wye Chung Khain 
     Senior Lecturer
     Universiti Kebangsaan Malaysia (UKM)
     Presentation slide: 



Download Forum Session 1 poster here