A total of 3,640 petrol stations throughout the country will implement the minimum wage order, which is to take effect this coming Jan 1.

Petrol Dealers Association of Malaysia (PDAM) president Hashim Othman said with this, the current minimum monthly wage of RM600 to RM700 would be raised to RM900 for peninsular Malaysia and RM800 for Sabah and Sarawak.

However, he said, the implementation of the minimum wage would increase the petrol stations’ operational costs by 30 percent.

“The increase in costs not only involve the workers’ salary, but also EPF, Socso and overtime payments," he told a press conference in Kuala Lumpur today.

The government has fixed the minimum wage in the private sector at RM900 per month or RM4.33 per hour for peninsular Malaysia and RM800 or RM3.85 per hour for Sabah, Sarawak and the Federal Territory of Labuan.

Due to higher operational costs, PDAM is urging the government to review the commission rates received by petrol station operators to lessen their burden.

Hashim said the last review was made in 2008 with the commission rates set at 12.19 sen per litre for RON95 petrol and seven sen per litre for diesel.

Meanwhile, he urged all petrol stations to fully implement the self-service system from Jan 1 to reduce their operational costs.

“The directive on self-service exists as it was issued in 2006 but many  operators are not following it,” he said.

Hashim said with self-service, PDAM expected the number of hired foreign workers at the petrol stations to be reduced by 50 percent.

To date, about 70 percent of the 50,000 workers at petrol stations throughout the country are foreigners.

- Bernama