Kuala Lumpur: The new minimum wage of RM1,500 will come into effect on May 1, Prime Minister Ismail Sabri Yaakob announced.
He said the increase from the current minimum wage of RM1,200 will only involve companies in the private sector which have five employees or more.
“The cost of living is rising and this is putting pressure on the B40 group,” he told the Umno General Assembly Saturday.
“I have listened to the debates and the rakyat’s grievances on the matter. I would like to announce that the government has agreed to implement the new minimum wage of RM1,500 across the country from May 1.”
“However, the Human Resources Ministry will hold discussions with Tan Sri Noh Omar’s Entrepreneur Development and Cooperative Ministry to allow small and micro companies to postpone the implementation of the minimum wage, as they might not have the ability to pay,” he said.
Ismail said in-depth studies have been carried out regarding the impact of the new measure, especially on micro-, small- and medium-sized enterprises.
The government previously said the revised minimum wage would be implemented by the end of the year.
On Thursday, human resources minister M Saravanan had said the government will ensure that employers will not exploit the situation by reducing their manpower by laying off workers once the minimum wage comes into force.
He also said there may be certain sectors which will be exempted from implementing the minimum wage, adding that this exclusion may be for a period of about two years.
Previously, groups such as the Malaysian Employers Federation had said the proposed increase would kill businesses, which were still in the recovery mode.
Federation president Syed Hussain Syed Husman said most businesses were not in a position to implement the proposed new minimum wage because they were still reeling from the economic shock brought about by the pandemic and the floods at the end of last year.
The minimum wage was last increased in February 2020, from RM1,100 to RM1,200 per month.
Apart from the minimum wage, Ismail Sabri also announced several measures fought for by Umno.
This included the revelation that the government paid an RM1.5 million ex-gratia compensation on November 29 last year to the family of firefighter Muhammad Adib Mohd Kassim who died in 2018.
“Even though investigations are still underway, I wish to announce something that was not made public before, and that is the government’s ex-gratia compensation payment of RM1.5 million to Adib’s family.
“This is proof of Umno’s efforts and concerns in defending the people,” he said to cheers from delegates.
Adib succumbed to injuries sustained while on duty during riots near the Seafield Sri Maha Mariamman Temple in Subang Jaya, Selangor in 2018.
Umno and PAS had accused the Pakatan Harapan government of mishandling the issue.
Ismail Sabri also said that foreign students studying in Malaysia would be required to learn Bahasa Malaysia.
“I have discussed it with the higher education minister (Wanita Umno chief Datuk Seri Noraini Ahmad), and she agreed to make it compulsory for all foreign students in the country to learn Bahasa Malaysia,” he said.
He also announced that as a result, the Dewan Bahasa dan Pustaka (DBP) Act would be amended to include enforcement powers.
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