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Minimum Wage Order Brings Mixed Reactions

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The announcement on the Minimum Wages Order 2016 (MWO 2016) which will be enforced on all employers in the private sector from July 1, regardless of the number of their employees, has invited mixed reactions from various quarters.

Malaysian Indian Network of Entrepreneurs (1MINE) president Datuk S. Gopinath said the government’s move in setting minimum wage was in line with the national aspiration in achieving a developed nation status by 2020.

“There is a possibility that the minimum wage is increased to RM1,500 by 2020 and this is indeed necessary to attain the high-income nation goal,” he told Bernama today.

He also opined that the salary difference between workers in Peninsular Malaysia and those in Sabah, Sarawak and Labuan should be adjusted accordingly in line with the 1Malaysia concept.

Meanwhile, Sepen Engineering Sdn Bhd company director, Wong Kah Poh, described the MWO 2016 as an additional burden and a big challenge to employers.

“Honestly, companies will develop their own methodology for business growth, but an announcement like this will clearly affect our goals and most likely we will have to consider retrenching our workers to reduce operation costs,” he said.

A. Karpagam, 49, a janitor working in Puchong, on the other hand, said she was pleased with the announcement.

“Although it is not much, it will definitely help cover my family’s expenses and allow me to save some money in the bank,” she said.

Under the MWO 2016, the minimum wage set for Peninsular Malaysia is RM1,000 and RM920 per month for Sabah, Sarawak and Labuan.

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