Sim said his ministry’s technical committee had considered various models during the past year, including minimum wage based on geographical areas, before deciding on the latest nationwide rate of RM1,700.
“For now, a uniform rate nationwide appears to be the most suitable,” he told reporters on the sidelines of a DAP Chinese New Year event at the Chinese Town Hall in Penang today.
On Friday, the Federation of Malaysian Manufacturers (FMM) asked that Putrajaya consider state-based or regional models for future minimum wage adjustments to reflect local economic realities more effectively.
Its president, Soh Thian Lai, said the federation remained concerned that a nationwide implementation of the RM1,700 minimum wage might have an uneven impact across states and industries.
Sim said FMM’s suggestion is not something new and had been implemented before, although only for a short time.
However, he said reviews of the methodology for revising the minimum wage were constantly ongoing and that his ministry would continue engaging with and considering feedback from all stakeholders.
“All feedback and input from stakeholders will be considered when we conduct studies to make improvements for future implementations,” he said.
Sim also said he received feedback from the chairman of the National Wages Consultative Council – a statutory body comprising the government, employers, and employees – that all three parties agreed with the new minimum wage rate.
The new minimum wage, with a RM200 increase from the previous rate of RM1,500, took effect yesterday.
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