Malaysia continues to raise minimum wage hinh anh 1Workers cut old tyres, which will be recycled, in an alley in Ampang, in the suburbs of Kuala Lumpur. (Photo: AFP/Mohd Rasfan)

Kuala Lumpur (VNA) - The Malaysian government will implement a standardised new minimum wage of 1,050 RM (253 USD) a month or 5.05 RM per hour nationwide - including Sabah and Sarawak - from January 1 next year, the Prime Minister’s Office (PMO) has announced. 

According to Malaysia’s national news agency Bernama, PMO in a statement said that the decision was made after considering the recommendations from the National Wages Consultative Council (MPGN) on the review of the Minimum Wages Order 2016. 

The Minimum Wages Order 2016 provides a minimum monthly wage of 1,000 RM for Peninsular Malaysia and 920 RM for Sabah, Sarawak and the Federal Territory of Labuan.

The statement also explained that the increase in the minimum wage was in line with the current economic situation of the country.

“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,” it said.

Hence, it would be more appropriate if the minimum wage to be raised periodically in the coming years, especially for small and medium enterprises.

According to the statement, the government also decided not to give any subsidies to employers due to the current economic situation of the country.

“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 asked to monitor the situation,” it said.

The latest minimum wage increase in Malaysia was in early July 2016. Accordingly, the minimum monthly salary rose from 900 RM to 1,000 RM for Peninsular Malaysia and 800 RM to 920 RM for Sabah and Sarawak.-VNA