Human Resource Minister Dr S Subramaniam said today a new act will be drafted to replace the Wages Councils Act 1947.

dr s subramaniam interview 210308 05 The step will be taken given the setting of minimum wage by way of the current law will take a long time and cumbersome procedures.

“In this matter, the Human Resource Ministry together with the Attorney-General’s Chambers will draft a new act on minimum wage,” said Subramaniam in his speech officiating a forum on minimum wage in Kuala Lumpur today.

                                    

He said further that the new law is expected to be table in the next parliamentary session.

Subramaniam also said while there have been many proposals forwarded on the issue, including from the Malaysian Trades Union Congress and the opposition-led Selangor government, nothing has been set in terms of minimum wage.

Details as to the implementation of a minimum wage act - such as whether it will be sectoral or regional - has yet to be finalised.

mtuc minimum wage protest 250607 poster “We have not decided yet, whether (minimum wage) will be sectoral or regional. If it were looked at nationally, that will involve all sectors. From the sectoral aspect, it will differ from place to place and will take into consideration the cost of living in that area.

“We will study it further and in greater detail to see which is the best system for our country,” he added.

Studies will also be conducted to ensure Malaysia remains competitive despite putting into place a minimum wage law.

Earlier in his speech, Subramaniam said the determination of a minimum wage that is higher than market levels may lead to the loss of jobs.

“With a hike in labour costs, business costs will also rise. For example, if employers fail to absorb the higher labour costs, it will ultimately affect the country’s ability generally to compete,” he said.

Subramaniam said futher that the minimum wage level would have to abide by international laws and taken into consideration the welfare of the disabled workers.

“From the aspect of international laws, we cannot discriminate between local workers and foreigners. Because of theat, whatever decision we make will affect all workers, foreign and local,” he said.

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