Consider State Based Differences In Minimum Wage Adjustments Says Fmm

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FMM president Soh Thian Lai’s remarks precede the new RM1,700 minimum wage – expected to benefit 4.37 million workers – which comes into effect tomorrow.
KUALA LUMPUR: Future minimum wage adjustments should consider state-based or regional models to reflect local economic realities more effectively, the Federation of Malaysian Manufacturers (FMM) said today.
Its president, Soh Thian Lai, said in a statement that the minimum wage should take into account the need to balance workers’ wages with inflation and consumer price movements.
However, he said the federation remained concerned that a nationwide implementation of the RM1,700 minimum wage might have an uneven impact across states and industries.
“Economic conditions and the cost of living vary significantly between states and regions, and a one-size-fits-all approach could place additional strain on businesses, particularly small and medium enterprises in less developed areas.
Soh Thian Lai.“FMM proposes that future wage adjustments consider state-based or regional models, as provided for in the National Wages Consultative Council Act 2011,” he said.
Soh’s remarks precede the new RM1,700 minimum wage – expected to benefit 4.37 million workers – which comes into effect tomorrow.
Under the Minimum Wages Order 2024, the new minimum wage takes effect from tomorrow for employers with five or more employees and from Aug 1 for employers with fewer than five employees.
Meanwhile, Soh also repeated FMM’s call for the adoption of a productivity-linked wage system, saying it encouraged higher productivity while ensuring workers received fair rewards for their contributions.
“FMM believes wage levels should fairly compensate the value brought to the role, rather than being solely based on the minimum wage.
“This approach ensures a more competitive, productive workforce while fostering skills development and career progression, thus benefitting both the industry and employees,” he said. - FMT

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