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Minimum wage increased to RM1,050 – for Sarawak and Sabah starting January 1, 2019

The government will implement a standardized new minimum wage of RM1,050 a month or RM5.05 per hour nationwide – including Sabah and Sarawak – from Jan 1 next year, Bernama reported.

Presently, the current Minimum Wages Order 2016 provides a minimum wage of RM920 per month for Sabah, Sarawak and the Federal Territory of Labuan. For Sarawakians and Sabahans minimum wages earners, this represents an increase of RM130 (Approx 14%).

In a statement, the Prime Minister’s Department said; “The government also decided not to give any subsidies to employers due to the current economic situation of the country.”

The statement also explained that “We must be aware that any drastic increase in salary will cause other problems to the industry which could also jeopardise the country’s competitiveness.

Hence, it would be more appropriate if the minimum wage to be raised periodically in the coming years so that the industries, especially the small and medium enterprise owners, would not have to close down their businesses due to high operating cost that would lead to retrenchment.”

“Employers and traders are also urged not to raise the prices of goods and services following the introduction of the new minimum wage and the Ministry of Domestic Trade and Consumer Affairs is urged to monitor the situation,” it said. — Bernama