Minimum wage will increase intake of local workers – Subramaniam

KUALA LUMPUR: The implementation of minimum wage on Jan 1 is expected to increase local worker intake among employers in the country compared to foreign workers, said Human Resource Minister Datuk Seri Dr S. Subramaniam.

He said this increase will reduce the dependence of local employers on foreign workers and allow them to move towards empowering local labour.

“In our labour law, we cannot discriminate workers based on their citizenship. We cannot give foreign workers lower wages than locals to reduce business cost.

“The government understands the rising costs borne by employers (with the implementation of minimum wage) and it has been discussed in the Cabinet. We are working on a win-win solution in one to two weeks’ time,” he told reporters yesterday.

Earlier he attended the Human Resource Minister Meets With Providers of Public and Private Skills Training function at the Putra World Trade Centre here. More than 500 people from about 300 skills training centres attended the meeting. Also present was Deputy Human Resource Minister Datuk Maznah Mazlan.

Prime Minister Datuk Seri Najib Tun Razak announced the implementation of the minimum wage for the private sector on April 30 and this was gazetted on July 16, whereby its rate will be reviewed every two years.

Currently, the government set RM900 as the minimum wage for private sector workers in the peninsula and RM800 for Sabah, Sarawak and Labuan.

Meanwhile, Subramaniam said the ministry was actively paving the way for the Malaysian Skills Certificate (SKM) to be recognised internationally, which will give foreign students a chance to study here as well as give SKM-holders the opportunity to obtain work abroad.

He said the initiative will also become a catalyst to bring various technologies from abroad and produce more high-income local skilled labour.

“This is in line with government policies to turn Malaysia into a centre of excellence for education and vocational training at the regional and international level.

“The Skills Development Department is also carrying out promotions for the SkillMalaysia Invite abroad, including in Surabaya and Jakarta in Indonesia,” he added.