KUALA LUMPUR: The minimum wage hike to RM1,200 in 57 towns and cities in Malaysia effective from next year is reasonable, said Primary Industries Minister Teresa Kok.
“The increase of RM100, from RM1,100 to RM1,200, in cities and towns appears reasonable and it will not cause any significant impairment to the bottom lines of employers.
"It is in tandem with the higher living costs in major cities and towns and it is consonant with the rate of current inflation," Kok said in a statement today.
She added that one could not hire a full time staff for a salary of below RM1,200 in cities and urban areas in Malaysia these days
She said the move was a calculated effort to alleviate urban poverty of both local and migrant workers.
It is also to encourage more Malaysians to stay and work here.
Kok added that the move was also 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 Manifesto, we have pledged to increase the minimum wage to RM1,500 within the period of five years.
"Thus, the increase of RM100 for the employees in the urban areas is among the initial steps taken by the government toward this direction," she said.
She hopes that the Malaysian Employers Federation (MEF) can understand and support the move.
“MEF should understand that the increase of salary will increase the purchasing power of the people, thus leading to the boost of the general economic growth of the country,” she added.