"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

This is the problem with ppl like u.
U guys don't even want to pay fair wages, complaint about the money flowing outside while ignoring the fact that those foreign workers bring more benefit to this country than just the money.

No wonder Malaysia big business (with lobby their politikus) keep asking for more 'cheaper' foreigners to come to work in this country. At the same time, don't really want to upgrade while knowing our 'poorer' Neighbours are catching up.

Then still confuse why majority Malaysian are poor

this is the biggest BS i've ever seen when i saw sabah on the list

sabah's cost of living and price of goods are the highest in the whole nation, u telling me the bosses there have difficulty paying RM200 extra every month?

Maybe because sabah has the most corrupted govt? Maybe in sabah, all biz have to spend highest % of profit into undertable money, therefore money gone missing from the economy, can't pay more to workers.

"The minimum wage of RM1,700, which will take effect from next February, applies to all workers. This includes non-citizens in the private sector, except for domestic workers and apprenticeship contracts, Bernama reported"

there is nothing to do about undertable money or corrupted gov at all....all price are controlled by the seller itself aka the bosses themselves
the profit margin there is insane which is why u can see a lot of luxury cars on the road....defender on the road there, KL pun kalah
we haven't even go into land cruisers and lexus LX yet

they rather spend the profit on themselves rather than on employees
like the boss my mom worked for...which is considered a rural area of sabah....u have no idea the amount of cars he owned

which is also why there is a video of a podcast posted on IG and they're talking about "work life balance"...everybody in the comment are shooting back because they all understand bosses are not spending a dime on them employees...so the employees might as well prioritize work life balance
now people understand why so many people are praising khairul aming while bosses are condemning him

boss know its either that or pick ulam from tree for dinner for your whole family
long time ago, should have amended policy and make it more attractive for more western companies to invest here to bring up working standard. the small and even big chinaman corpos will have to somewhat follow to stay in the game. easier said than done but beats actively chasing people away and now wooing them back with lower value things e.g. datacenters thats just dumping ground for western tech companies
who to blame? most likely gomen la. maybe the guys from the other political ideology might've done something different asfnjosgnoshnoshrnoaegjaipf help the propaganda ministry is right at my door adfgnodghhosgh.

This post has been edited by GHBZDK: Oct 24 2024, 08:40 AM

What will happen is there will be an influx of people from these states
To go outside to work
Then sendiri state cannot develop
Cause no people to work there
Blame sin and maksiat luring the youths away

Gisb got complain they cant pay?

Sana Makan RM4-5 can get to eat wantan mee/char kuey teow/ nasi ayam. KL is double up

Waiting for sabahan to call BS on this bosses 😂

Wcyd Taukeh say they need to change car every year if not how he afford

This!!!!

Malaysian Government have to learn from UK salary distribution by area. That's will take count base on each City.

Syukur I still get RM8 chap fan for 1 meat + 2 vege in Seremban.

tempat dah lah tak banyak peluang perkerjaan. dishwasher at road side store also want to demand min salary susah oh

not he is the best of the best meh?
bright mind ma

What u mean by pay fair wages? I said, even if we pay according to the minimum wages set by gov, no local workers will want take on such jobs. So, now you want those companies to pay more than the minimum wages set by gov for those jobs, then you must expect there will be increase in the price for the products too. Cos you need to factor in those additional cost under your manufacturing cost and then mark up and sell. No companies willing to reduce their earning.

Do people really earn just RM250 back in 1995? Sounds too low even for back then.

Also, I can still find RM10, RM12 chap fan in KL. Heck sometimes can get RM7, RM8. What you take until RM15?

I m sabahan and I can comfirm this is true. That is why come work in kl.

1.7k minimum wages, already complain this and that... Last time my graduate salary in Aust, 1 day pay = 1 month pay in Malaysia. U see kesian or not.

U knew our salary is so low even in today standard, and u keep finding an excuse for not increase the efficiency. For those who can't compete or don't want to change in today's market, just let it die. The market will survive. Just like the work force, if Malaysian can't even want to improve, don't cry father cry mother when our neighbors overtake us in the next decades to come.