KUALA LUMPUR: Minimum wage is likely to be revised upward by RM200 to RM300 to reach RM1,700 or RM1,800.

This matter is scheduled to be discussed in the Cabinet this month.

It is learned that the National Wage Consultative Council has reached a consensus on the revision of the minimum wage in a meeting held late June.

Human Resources Minister Steven Sim revealed earlier that the documents on minimum wage would be tabled for a Cabinet decision later this month.

Under the National Wage Consultative Council Act 2011, minimum wage is to be reviewed every two years.

Minimum wage was first implemented in Malaysia in 2013, when it was set at RM900 for Peninsular Malaysia and RM800 for East Malaysia.

The minimum wage was subsequently revised to RM1,000 in 2016, RM1,100 in 2019, and RM1,200 in 2020.

In 2022, minimum wage was increased to RM1,500.

Malaysian Employers Federation (MEF) chairman Datuk Dr Syed Hussain Syed Husman confirmed that the National Wage Consultative Council met on 25 June, and one of the matters discussed was to review the existing RM1,500 minimum wage.

However, he declined to elaborate further on the increment.

“MEF presented its views on minimum wage after taking into consideration that majority of small and medium employers are still facing cash flow issue.

“Any revision of the minimum wage will have to take into consideration employers’ ability to execute the revised minimum wage,” he said.

The proposal casts a negative impact when an employer opts to discontinue his business owing to inability to pay his workers the higher minimum wage.

“We need to take note that about 10 per cent of employees did not receive the RM1,500 minimum wage enforced in May 2022.”

Syed Hussain also said the government might consider exempting small-time employers from the minimum wage scheme, as practised in the United States, Japan and South Korea.