The decision to raise the minimum wage to RM1,200 was a
Cabinet decision made in consultation with the National
Wages Consultative Council (NWCC), says Human Resources
Minister M. Kulasegaran.
He said increase was entirely within the National Wages
Consultative Council Act 2011 which stated that the minimum
wage must be reviewed at least once every two years.
“We are keeping to the roadmap of the government to reach a
RM1,500 minimum wage, as promised within the first term of
Pakatan Harapan as the government, and this is one way to do
“We realise the economy is not doing well and this is why we
are not implementing it nationwide
this time. We are only implementing it in 57 chosen major
towns and cities, ” said Kulasegaran.
He said these places were chosen after consultation with
certain parties and if there were those who disagree, they
could always write to him.
He was replying to criticisms from the Malaysian Employers’
Federation and Federation of Malaysian Manufacturers which
said that the ministry had been hasty in implementing the
minimum wage of RM1,200 in 57 major towns and cities
The two federations also questioned the choice of the 57
places where the minimum wage is to be raised by Jan 1,2020.
Malaysia introduced its minimum wage policy in 2012 after
the National Wages Consultative Council Act 2011 was passed
Under this law, the NWCC was established to set the
framework for the implementation of the minimum wage in
Under NWCC’s Minimum Wages Order 2012, which was enforced on
Jan 1,2013, the minimum wage was fixed at RM900 a month for
the peninsula and RM800 for Sabah, Sarawak and Labuan.
On July 1,2016, as per the Minimum Wages Order 2016, the
minimum wage was raised to RM1,000 a month in the peninsula,
and RM920 in Sabah, Sarawak and Labuan.
In the latest exercise, the minimum wage will be raised to
RM1,200 in 57 towns and major cities, an increase that was
first announced in Budget 2020 in October.
The Human Resources Ministry said the minimum wage would
remain at RM1,100 a month in areas that were not considered
part of these cities and towns.