Senator Urges Government To Review Minimum Salary Increase
Author Avatar
(Image: The Malaysian Reserve)

Senator Dr Yaakob Sapari has appealed to the government to review the minimum salary increase as it does not match the rising cost of living, particularly for graduates.

According to the senator, the current rate for salary increment ranges only between 100% to 150% whereas the cost of living has increased by 400% to 600%. He further commented that although the 12th Malaysia Plan (12MP) is still focused on helping the poor and driving Malaysia to become a high-income country, the country’s wage rate does not commensurate with these efforts.

“Just imagine, I was a university graduate in 1985; at that time, my friends who worked for the government received a (basic) salary of RM1,060 or RM1,200 including allowance. Now, (almost) 40 years later, university graduates are being paid below RM2,000, which means they are living below the poverty line,” Dr Yaakob said during a Parliament session.

Dr Yaakob also emphasised that this low wage rate has led to a brain drain, with young Malaysians migrating to other countries in search of high-paying jobs. “Before the Covid-19 pandemic, around 300,000 Malaysians crossed the Johor Causeway to work in Singapore because wages there were higher and the currency value was higher. That is why efforts to raise the minimum wage need to be reviewed,” he said.

Malaysia’s minimum wage was last raised by RM100 in February 2020, putting it at RM1,200 – which is significantly lower than Malaysia’s new Poverty Line Income (PLI). The country’s Poverty Line Income for households was revised from RM980 per month to RM2,208 in 2020, following the publication of the Household Income And Basic Amenities Survey Report 2019. Many government servants, too, are still earning a monthly salary of less than RM2,000.

(Source: The Edge Markets)

5 1 vote
Article Rating


Comments (0)

Notify of

Inline Feedbacks
View all comments
Top Personal Finance News Articles
Post Image
Petrol Price Malaysia Live Updates (RON95, RON97 & Diesel)
The RinggitPlus Team
- 28th September 2022
We provide weekly updates on every Friday at 5pm on the prices of RON95, RON97 and Diesel in Malaysia and a chart that shows the movement of fuel prices across a 6-week period. Bookmark this page now!
Post Image
Astro 4K Ultra HD Broadcast To Be Available For Subscription By The End of This Year
Brian Chung
- 14th August 2018
By the end of 2018, Astro customers will be able to watch football matches in Ultra HD. Read on to know more about the 4k Ultra HD service.
Post Image
Touch n Go RFID: What Malaysian Road Users Need To Know
Jacie Tan
- 10th August 2018
Everyone’s talking about Touch ’n Go RFID being used at Malaysian highway tolls soon – here’s what you need to know about it.
Post Image
Best High Interest Savings Accounts In Malaysia (May 2022)
Pang Tun Yau
- 31st May 2022
Make your money work for you by depositing them into the best high-interest savings accounts in Malaysia!

Related articles

Related Posts Image
Related Posts Image
Related Posts Image
Related Posts Image