Malaysia Must Do The Right Thing Sim Tells Guan Eng On Minimum Wage

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PARLIAMENT | Human Resources Minister Steven Sim has pressed home the importance of mandating the same minimum wage for Malaysian workers and migrant workers alike.
During his winding-up speech on the 13th Malaysia Plan at Parliament today, he cited humanitarian as well as pragmatic reasons for the policy, in response to Lim Guan Eng’s (Harapan-Bagan) proposal to do away with the minimum wage mandate for migrant workers.
“(The minimum wage law) is not just a number in the gazette, but represents our humanitarian values.
“The fundamental issue is not just the International Labour Organisation (ILO) or any law, but we must do the right thing. This is a matter of human rights,” he told the Dewan Rakyat.
Sim also reminded that it is Malaysian workers who would ultimately suffer if employers are no longer required to pay migrant workers at least the RM1,700 per month minimum wage.
This is because such a move would encourage employers to hire migrant workers and depress wages for Malaysians.
“This is a form of unfair competition at the bottom that is detrimental to our own people.
“If we allow the labour system in the country to oppress certain groups, even migrant workers, the same system will eventually harm Malaysians,” he said.
Malaysia’s minimum wage was increased from RM1,500 to RM1,700 per month effective Feb 1, though employers with fewer than five employees were given a grace period until Aug 1.
Bagan MP Lim Guan EngOn Aug 6, however, Lim said there is no need to mandate the minimum wage and two percent EPF contributions for migrant workers, because Malaysia is not bound by United Nations or ILO conventions on the matter.
Lim’s comments were rebuked by labour NGOs and activists, who said the proposal is dehumanising and removes a safeguard against exploitation.
Meanwhile, Sim told the Parliament that the increased minimum wage has overwhelmingly benefited Malaysian workers.
He said prior to the adjustment, there were 4.37 million workers who earned less than RM1,700, of whom 80 percent are Malaysian citizens.
“So, the minimum wage increase gives a huge benefit to Malaysians. Moreover, statistics show that the bottom 10 percentile Malaysian wage earners have seen a wage increase of up to 60 percent in the 10 years that the minimum wage mechanism has been implemented,” he said. - Mkini

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