THERE will zero tolerance for employers who flout the minimum wage ruling or are caught breaking laws on hiring foreign workers, said Human Resources Minister M. Kulasegaran. 

This applied to the biggest plantation companies that employ thousands of labourers, down to the humble tom yam stall owner with one kitchen helper, said the newly appointed minister.

“(This applies to) everyone, including in the informal sector. This is the law of the country. Minimum wage applies to everybody,” Kulasegaran said today.

It is estimated that businesses in the informal sector, such as night market merchants and food hawkers, employ about one-third of the country’s more than 14 million workers.

His warning to employers comes as the new Pakatan Harapan government seeks to fulfil its election promise of giving Malaysians decent wages.

The new PH administration is set to announce an increase in the minimum wage rate in August. It will also streamline the rate across Peninsular Malaysia, Sabah and Sarawak. 
The current rate is RM1,000 in Peninsular Malaysia and RM900 for Sarawak and Sabah.

In its election manifesto, PH said it would increase the minimum wage rate to RM1,500 per month for the peninsula, Sarawak and Sabah.   

Employers and analysts had said that higher wages would result in higher operating costs, which could, in turn, drive up prices of goods and services.

Kulasegaran said such concerns were not new but that the government was sticking to its pledge of ensuring that all Malaysians could earn a decent wage.

“Our basic income is far more important. We should live with decent wages. It’s no use if you are a Malaysian and paid RM500 or RM800 a month. The government will not compromise on this. We will see it achieved.

“Yes there will be some pain here and there but we will see where we can cushion it.”

He said the welfare of all Malaysians were PH’s priority.

“Malaysians must be given priority (over foreign workers) at whatever cost and they must get decent wages.”

Kulasegaran also said his ministry was working closely with its counterparts in the Home Ministry to act against employers found to illegally hire foreign workers.

This includes employers who hire workers without proper permits and workers who breach the terms of their permits, for instance, by working in different industries.

About 1.7 million legal foreigners work in Malaysia. Industry groups and analysts estimate that there is one illegal labourer for every legal worker.

“To me, there are only two priorities in my ministry. Zero corruption and enforcement must be meticulous and fantastic,” Kulasegaran said.

“There will be no nonsense on this. We mean business. You will soon hear many businesses being charged for violating the law (on foreign workers).  

“We will follow the law and enforce it strictly against everyone in this country,” he said. – June 4, 2018.