Raising minimum wage will spur national economy, says Human Resource Minister


KUALA LUMPUR: Raising the minimum wage from RM1,500 to RM1,700 a month effective Feb 1 next year will further spur the national economy, Human Resources Minister Steven Sim Chee Keong said.

He pointed out that workers with more money in their pockets would stimulate local markets.

"A simple example is that there are 4.37 million workers in Malaysia currently earning less than RM1,700. So, if we assume they received RM1,500, next year, they will have a combined additional salary of RM10 billion.

"Add to that RM10bil for the civil servants’ salary hike, so in 2025 there will be almost RM20bil in additional funds in the form of worker salary increments that have the potential to be an injection of funds to the local market,” he said during the winding up of the debate on the Supply Bill 2025 at the policy level for the Human Resources Ministry at the Dewan Rakyat on Tuesday (Nov 12).

Sim added that minimum wage should not be viewed as a starting wage for degree holders and skilled workers; instead, it should be the government’s efforts to raise the lowest base salaries among unskilled workers with low academic qualifications.

He also said that the proposed minimum wage by sector required more in-depth studies as it encompassed economic dynamics, operational costs, and employer capacity in each sector. – Bernama

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Parliament , Supply Bill , Human , KESUMA , Wind-up , Policy Level

   

Next In Nation

Kyiv accuses Russia of launching intercontinental ballistic missile attack
Fireman rescue 40 people trapped by water surge in Kelantan
Over RM23mil in arrears owed by federal land development agencies, says Kelantan MB
Over 40,000 illegal immigrants held as of Nov 13
Female engineer charged in court for using position to award tender
Hassan Karim called up before PKR's disciplinary board over 5G network deal comments
Bus lanes in Penang lauded but some businesses cry foul
Traders acquitted of weapons possession, kidnapping charges
Not enough engagement with us on Gig Workers’ Economy Bill, says industry players
Melaka Health Department shuts two hotel kitchens for rat droppings and cockroaches

Others Also Read