Should Govt Delay Minimum Wage Review? MEF Thinks So

The Malaysian Employers Federation (MEF) has urged Prime Minister Tan Sri Muhyiddin Yassin to delay the minimum wage review. The review of minimum wages is due in February 2022. 

In a statement yesterday, the organisation's president Datuk Dr Syed Hussain Syed Husman said that now is not the best time to add the cost of doing business. He noted that employers were forced to resort to downsizing, retrenchment, and imposing pay cuts from 30% to 50% because of Covid-19. 

He said that MEF holds the position that the status quo should at least stay the same for the next two years, considering the pandemic. He added that the MEF is appealing to the government not to add to the employers' burden as the pandemic is still flaring and provide employers with some breathing space to stabilise the business and create jobs. 

 

Prime Minister is reviewing the minimum wage rate

In his 2021 Workers' Day speech, Muhyiddin said that the government is reviewing the minimum wage rate to ensure the workers' earnings stay relevant with the current economic situation. 

The prime minister stated that the government is always concerned about the minimum wage matter and would make efforts to improve workers' rights and protection. 

He said that he hoped all parties would participate and urged those wishing to voice their concern on this issue to do so via the provided platform. 

 

Improving workers' rights and status

Muhyiddin said the government also made several efforts to help workers weather challenges that the pandemic brought. Currently, the government has a three-pronged strategy:

• The first strategy is to retain jobs,
• The second strategy is to protect the rights of workers,
• The third strategy is to create job opportunities for the unemployed. 

The prime minister also said the government is in the process of amending and improving labour laws, specifically the Employment Act 1955, by widening its application scope. 

The actions include:

• Covering all workers in the private sector regardless of their wages,
• Extending the maternity leave to 90 days,
• Providing three days of paternity leave,
• Decreasing the weekly working hours from 48 to 45 hours, 
• Introducing a flexible working schedule. 

He also touched on the government's efforts to decrease unemployment, including implementing the employment services portal MYFuture Jobs, national job matching, one-stop centre Upskill Malaysia and MyStep, a short-term employment programme. 

To reduce foreign workers dependency and increase the number of skilled local workers, he said that the Skills Development Fund Corporation would introduce the Convertible Loan Policy Programme for Skills Training Loan at the Malaysian Skills Advanced Diploma level.

As many training institutions had to close down because of the pandemic, the government has taken the initiative to develop a new learning hub called "e-LATiH" to help people acquire new skills. 

 

The Prime Minister urged the people to continue combining their efforts and ensure that the country stays peaceful, prosperous and progressive. 

 

Source: The Edge Markets 1, 2

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