MTUC president lauds minimum wage move, ex-official calls for more

Editor’s note: This article has been amended to reflect that Kamarul Baharin Mansor is no longer MTUC secretary-general.

BUDGET 2025 | Malaysian Trades Union Congress (MTUC) president Mohd Effendy Abdul Ghani has lauded Prime Minister Anwar Ibrahim for the move to raise the minimum wage from RM1,500 to RM1,700 beginning in February.

He said Anwar’s announcement was a sign of the government’s commitment to protect the welfare of workers, particularly those from low-income groups.

“The minimum wage increase is an important move that can help ease the burden of the rising cost of living due to inflation and global economic pressure.

“This is also in line with the government’s intention to promote a fairer economy and ensure that no worker is left behind in the overall development,” he was reported as saying by New Straits Times.

Effendy (above) also reminded employers to fully adhere to the new minimum wage without attempting to exploit their workers, adding that there needs to be stronger enforcement of relevant laws to ensure the protection of workers’ rights.

He said that MTUC would like to encourage larger employers with the financial capability to offer wages that exceed the set minimum wage.

“We sincerely hope and welcome actions from employers who are willing to provide higher wages as a proactive measure to appreciate their workers’ contributions and help them cope with the rising cost of living,” he added.

The move was also backed by Malaysian Employers Federation (MEF) president Syed Hussain Syed Husman who said that the new minimum wage should be regarded as a starting point rather than a benchmark.

“The MEF urges employers which can afford higher salaries to pay above the minimum wage. No one should use the minimum wage as an excuse to pay based on the minimum wage,” Syed Hussain said.

The two-year revision cycle disrupted

However, former MTUC secretary-general Kamarul Baharin Mansor said that the move fell short of expectations, citing that since 2013, the group had fought for the minimum wage to be set at RM1,800.

“Our struggle for the RM1,800 minimum wage was based on the basic salary being set at RM1,500 and a cost-of-living allowance worth RM300. This was based on the living expenses back in 2013.

“However, we had five prime ministers since then but none of them delivered on it,” Kamarul said in a statement.

He reminded the government that according to the National Wages Consultative Council Act 2011, the government was obliged to review the minimum wage every two years.

However, he said the announcement scheduled for May this year was postponed, disrupting the cycle.

“And this affected workers, especially those in the B40 category.

On March 15, Kamarul said that the government’s delay in reviewing and announcing a new minimum wage was causing hardship for workers.

“The ministry should be aware that salaries need to be reviewed every two years. There are increases in all costs, including goods, taxes, water, and electricity.

“These costs need to be balanced with new wage rates. The desires and needs of workers should be understood and met by the government. Do not betray the trust and hope of workers in the government,” Kamarul said.

New RM1,700 minimum wage also applies to foreign workers

Worker and employer groups welcome new RM1.7k minimum wage

New RM1,700 minimum wage from February 2025