THE law permits for the minimum wage to vary by sector, Human Resources Minister M. Kulasegaran said today, in response to criticism that Putrajaya was backtracking on the new rate after complaints from employers.

He said different minimum wage rates are allowed under the National Wages Consultative Council Act 2011, which includes the coverage of recommended minimum wage according to type of employment and regional areas. 

He said the council will look into the recommendations for setting a new minimum wage before a proposal is brought forward to the cabinet for approval. 

Kulasegaran said the Federation of Malaysian Manufacturers Institute (FMM) has also suggested that regional areas be considered as a factor in determining the minimum wage.

“It is all in the act. They say (we) must take (into account) regional (factors). 

“I must take that suggestion into recommendation. I can’t say no. But finally the cabinet will decide,” he told a press conference after a closed-door dialogue with FMM today. 

FMM president Soh Thian Lai was present. 

Kulasegaran was asked to elaborate on his announcement yesterday that Putrajaya was considering setting “more realistic” minimum wage rates according to business sectors. 

He said some businesses found the current minimum wage of RM1,100 to be too high, resulting in lay-offs and increased operating costs.

The new rate took effect on January 1 across the country.

Previously, the rate was RM1,000 in Peninsular Malaysia and RM920 in Sabah and Sarawak. – February 26, 2019.