"Employers In Kelantan, Perlis & Sabah Say They’re Not Prepared To Face Implement RM1,700 Minimum Wage

In light of the recent announcement during the 2025 Budget last week regarding the new minimum wage increase to RM1,700, concerns have been raised by employers in several Malaysian states.
They are particularly worried about their readiness to comply with the new requirements.

The states of Kelantan, Perlis, and Sabah appear to be the most affected, as many business owners fear that the rise in overhead costs could jeopardise their operations.

According to a report by Utusan, in partnership with the Chamber of Commerce and Industry, these states encounter distinct challenges stemming from their smaller economic market sizes and relatively lower cost of living, as highlighted by The Vocket.

With the implementation of the new minimum wage set to begin on February 1, 2025, the pressure is mounting on employers to adapt quickly to these changes.

The situation is particularly dire in Sabah, where businesses are grappling with higher raw material costs, compounding the difficulties of meeting the new wage requirements.

Furthermore, the median monthly salary in these regions remains significantly lower than in other states.

As of March 2024, Kelantan’s average wage stands at RM1,645, Perlis at RM1,682, and Sabah at RM1,882.

This puts employers in a precarious position as they navigate the transition to a higher minimum wage.

In contrast, urban workers and university graduates tend to start with salaries ranging from RM2,000 to over RM3,000.

This discrepancy highlights the stark difference in earning potential between urban and rural areas, further complicating the matter for employers in less developed regions.

With many businesses already operating on tight margins, the new minimum wage law is expected to create additional strain.

Employers fear that the increase will lead to higher prices for goods and services, potentially reducing their customer base and overall revenue.

This scenario could result in difficult decisions regarding staffing levels, with some businesses considering layoffs or reductions in hours to manage the increased payroll costs.

Despite the government’s efforts to raise the minimum wage, it is clear that a one-size-fits-all approach may not be suitable for every state.

The diverse economic landscapes of Kelantan, Perlis, and Sabah necessitate tailored support and resources to help employers transition to the new wage structure without jeopardising their businesses.

In conclusion, while the intention behind the RM1,700 minimum wage is to improve the living standards of workers, it is essential for the government to recognise the challenges faced by employers in these states."

https://weirdkaya.com/employers-in-kelantan...Tc11KHgu1_jb8HQ


This post has been edited by Jazted: Oct 23 2024, 11:23 PM

Top kek formula men putting sabah min salary on par with KL/putrajaya

This post has been edited by B0ss_ku: Oct 23 2024, 11:32 PM

To be fair it's a legitimate point, I believe one of the study says to be T15, you need a monthly income of:

21k (in KL)
7k+ (in Kelantan)

Also doesn't Sabah Sarawak have their own labor law anyway? I believe they've only just implemented 1.5k min. wage quite recently.

Sarawak Union are quite pro on the worker, they 100% support on the latest RM1.7 increase of minimum wage. However, the spending power at Sarawak are far lesser from KL, not many businesses are going to sustain long.

https://www.freemalaysiatoday.com/category/...-sarawak-union/

This post has been edited by Jazted: Oct 23 2024, 11:40 PM

i think enforcement and awareness in these states quite low. They dont care how high the min wage is.

I don't think was him, he was one of the few that earn million with startup and it happen after he forced to leave politicians when PKR civil war with Azmin during the PH 1.0. He knows better the effect to the economy, and this won't get much voter's support either. It's a losing bet.

The one suggested most probably the socialist type inside PH

This post has been edited by Jazted: Oct 23 2024, 11:45 PM

kekkkkk rafizi

Actually nobody outside kl, pj, subang, pucheong, penang Island, JB and kch is ready for minimum wage.

north and south

Working time got peak / off peak hours. Adjust schedule accordingly, use part time workers, no problem one lah. Calculate min wages by hour.

After 30 years the wages macam didnt increase that much but food prices double triple.

I wonder whats going on?

Five charts: How climate change is driving up food prices around the world
https://www.carbonbrief.org/five-charts-how...ound-the-world/

Maybe employers are keeping the profit for themselves instead of reinvesting?

Wages and food gong up at the same rate.

1995 got people earn RM 250 per month, chap fan RM2.50
A few years back, min wages RM 1000, chap fan RN 10
Now min wages RM 1500 chap fan RM 15
Next year min wages RM 1700 chap fan RM 17

Give or take in the past 10 years our min. wage has doubled (factoring in the upcoming RM1.7k). Good on you if you've accumulated wealth pre-2010.

Dude is going to be one term minister soon.

How can he do a blanket minimum wage throughout the whole country.

Imagine kuih seller in small kampung have to pay her helper RM1700 minimum wage where cost of living is so damn low and Soto Ayam is only RM3.50 per bowl.

This is the case of scholar in ivory tower too high up and not realizing what the rakyat really needs or wants.

This post has been edited by friedricetheman: Oct 24 2024, 12:13 AM

Another RM55 per month would meet RM1,700 minimum wage, but cry mother-father.
Okay, won't force you. Take your profit, close business, go vacation. Turkey now cheap.

Capitalism is proven to increase wealth-gap so when business owners cry mother-father, then close your losing money biz.

Well...need to keep up

This apply for Malaysian or including those foreigners? Kinda stupid if they implement for all because some of the jobs out there like manufacturing jobs, most of them are using foreigners, because no local ppl want to work at such hard and long hour jobs even with O.T. thus this increment will cause more money to flow out from country.

Do blanket country but segregated it based on industry lah