KUALA LUMPUR: The new minimum wage of RM1,500 is expected to be implemented soon and not at the end of the year, says Datuk Seri M. Saravanan (pic).

       The Human Resources Minister said the government proposed the implementation to be made in the near future as the economic situation was seen to be improving with most businesses also recovering.

       “Malaysia's gross domestic product (GDP) recorded an increase of 3.6% in the fourth quarter of 2021. This was made possible with the government's financial assistance to employers to continue business operations and retain employees.

       “Based on the projections in Budget 2022, economic performance is expected to grow at a rate of 5.5% to 6.5% this year.

       “In relation to this, the government proposes the implementation of the new minimum wage rate in the near future and not at the end of 2022," he said in a parliamentary reply on Monday (March 14).

       He also said that while some parties wanted the new minimum wage to be expedited due to the rising cost of living, it will only be done after taking into consideration the people’s actual needs and the ability of employers.

       On a question by Syed Saddiq Syed Abdul Rahman (Muda-Muar) on whether the government would consider increasing the minimum wage to RM1,600 per month, he said any increase must be done in stages.

       This was to ensure continuity of business operations and retention of employees, he added.

       “Excessively high and drastic increases in the minimum wage rate can affect the country's competitiveness, causing the labour market to face the challenge of creating new high-quality and skilled jobs,” he said.

       Syed Saddiq, M. Kulasegaran (PH-Ipoh Barat), Datuk Seri Idris Jusoh (BN-Besut) and Shaharizukirnain Kadir (PN-Setiu) had earlier asked the Human Resources Ministry to state the government’s plans to expedite the implementation of the new minimum wage of RM1,500.