PUTRAJAYA is looking to raise the minimum wage from RM1,200 to RM1,500 in the near future instead of waiting until the end of the year as previously announced, Human Resources Minister M. Saravanan told Parliament today.

He said the cabinet had also agreed in principle to raise the minimum wage from RM1,200 to RM1,500.

“The government proposes the implementation of a new minimum wage soon and not at the end of 2022, given that the current economic situation is improving and most businesses are showing a recovery trend,” he said, adding that the ministry is also looking into ensuring that businesses do not reduce their workforce due to the increase in the minimum wage.

“The new minimum wage rate will only be implemented by looking at the real needs of the people and the ability of employers,” Saravanan said.

Last month, the minister said the government was looking to raise the minimum wage by the year’s end and that it had not yet received approval from the cabinet to raise the minimum wage to RM1,500.

Meanwhile, Saravanan said the country’s GDP recorded a 3.6% increase in the fourth quarter of 2021.

He said this increase was achieved with the financial assistance given by the government to employers to continue business operations as well as retain employees.

Based on Budget 2022 projections, economic performance is expected to grow at a rate of 5.5-6.5% in 2022, he said.

Malaysia last raised the minimum wage in February 2020, from RM1,100 to RM 1,200 per month. The hourly rate also increased from RM5.29 to RM5.77.

Based on the Minimum Wage Act, the government is supposed to review and increase the minimum wage every two years. – March 14, 2022.