Raising Minimum Wage Will Spur National Economy - Sim

KUALA LUMPUR, Nov 12 (Bernama) -- 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, there are 4.37 million workers in Malaysia who are 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 RM10 billion for the civil servants’ salary hike, so in 2025 there will be almost RM20 billion 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 (KESUMA) at the Dewan Rakyat today.

Sim added that minimum wage should not be viewed as a starting wage for degree holders and skilled workers, instead it was 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 according to sectors required more indepth studies as it encompassed economic dynamics, operational costs and employer capacity in each sector.

-- BERNAMA