Debate over raising Malaysia’s minimum wage: Who will bear the additional cost?
Summary
Malaysia is debating whether to raise the minimum wage from 1,700 ringgit to as high as 3,100 ringgit, with ministers split over whether employers alone should pay for the increase. The government may announce a decision in the upcoming budget, while migrant workers, including about 400,000 Nepalis, are watching closely.
Key Points
- Malaysia is weighing a minimum wage increase from 1,700 ringgit to 2,000 ringgit or 3,100 ringgit.
- Minister Steven Sim says businesses should not bear the full cost and the government may need to support firms with subsidies and training.
- Prime Minister Anwar Ibrahim says low-paid workers should not remain on 1,700 ringgit while productivity and profits rise.
- Around 400,000 Nepalis work in Malaysia and are closely affected by the wage debate.