Why the cold shoulder on minimum wage?

 

 I watched the live telecast of Prime Minister Anwar Ibrahim's speech yesterday and PSM in spirit welcomed the government's move on the oil subsidy.

Our only concern is that the government must show how the money is used to help the B40 and M40.

While the PM bragged about increasing civil servant wages, what was disappointing was that he again refused to talk about the minimum wage and indicated as if it was entirely up to the private sector to increase the wages when in reality, it is the role of his government to review and announce the minimum wage.

Anwar spoke about his government’s seriousness of the progressive wage policy for the private sector. Yet that policy based on the government documents is voluntary, limited in scope and is just a pilot project for now.

Similarly, during his May 1 Labour Day speech attended by around 3,000 people at the government-sponsored air-conditioned PICC in Putrajaya, the most important announcement was that civil servants will enjoy a salary hike of more than 13 percent starting December, among the highest increase in the nation’s history.

He also said that the government will ensure the minimum income for civil servants exceeds RM2,000 per month. The follow-up announcement expressed his hope that private companies would emulate the government’s initiative in raising civil servants’ salaries.

While he emphasises the need for the private sector to increase wages, he forgets that the minimum wage increase is a cabinet decision and the powers are in his hands.

Never have employers increased wages for the bottom-earning workers unless forced by law. This also is true for the hundreds of thousands of contract workers working in government premises, schools, hospitals and elsewhere who get paid through government-appointed contractors.

At the same event, Human Resources Minister Steven Sim was very eloquent and poetic in his speech but he just delivered a one-liner that the minimum wage will be reviewed this year.

He went on to talk about the Economy Ministry’s progressive wage which in the real term is only a pilot project with limited scope.

PM Anwar Ibrahim

During last year’s Workers’ Day speech, Anwar said that his government would prioritise the wages of workers in the country so that they could be increased.

“I don't want employers, economists or ministers to dispute (employee wages). Our responsibility is to increase wages for private and public workers.”

He also mentioned that the minimum wage would be discussed in the cabinet meeting in June that year.

Minimum wage hike due date

The question in my mind was why didn’t the government announce a minimum wage since the due date for it was technically May 1 this year since the two-year term of the 2022 wage increase by then prime minister Ismail Sabri Yaakob should technically expire on April 30 this year.

While the government and union officials spent May Day at the gala event, around 1,500 workers and activists from various backgrounds held a Kuala Lumpur rally in the hot sun putting forward many demands including a living wage salary of RM2,000.

In most countries, unions would be on the street every May Day putting forward their demands as it is part of a tradition as May 1 itself came about after many struggles and sacrifices.

In Malaysia, there was equally a big fight to get May 1 declared a holiday. Today most unions, numbering only six percent of the workforce, don’t seem excited to organise rallies on Labour Day or take it for granted.

How much should it be?

PSM previously said that based on the government minimum wage formula, the minimum wage for rural Malaysia should be RM1,884 and for urban areas it should be RM2,568. On average, the national minimum wage should be RM2,444.

Unicef said the minimum wage rate should be RM2,102 per month which Economy Minister Rafizi Ramli said the government will study comprehensively.

In recent weeks, it was reported that former Public Services Commission chairperson Zainal Rahim Seman was appointed National Wages Consultative Council chairperson effective May 1 to Sept 30, 2026.

The same report stated that the National Wage Consultative Technical Committee had completed its review of the Minimum Wage Order 2022, which will be discussed and finalised at the next council meeting.

Now this is alarming because unlike in previous years, we were unaware of this as none of us were consulted or this consultation was done with selected people.

Whatever was said and done, the PM already indicated that the minimum bar for civil servants will be beyond RM2,000, therefore any minimum wage below RM2,000 would be scandalous.

While we understand increasing civil servant salaries would be the right thing to do to ensure the political support the government needs from that group, employers’ lobby would ensure wages are kept low.

The minimum wage seems to have been given the cold shoulder and discussion around it seems to be hush-hush.

It is time the Madani government harmonises its rhetoric with its implementation. - Mkini

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S ARUTCHELVAN is PSM deputy chairperson.

The views expressed here are those of the author/contributor and do not necessarily represent the views of MMKtT.