Last month, it was announced by Malaysian Prime Minister Ismail Sabri Yaakob that the minimum wage in Malaysia will be increased to RM1,500 (US$ 354) from its previous RM1,200 (US$283).
While the increase was to be implemented nationwide, the Malaysian Human Resources Minister, M. Saravanan, has now come out to say that for now, the increased wage will not apply to all employment sectors.
Instead, some sectors are allowed some flexibility once the implementation comes into effect. These exempted parties include companies that have less than five employees, those who work odd jobs, and sectors that are facing huge losses from the COVID-19 pandemic, namely the hospitality and tourism sectors.
"Odd-job workers are still earning RM500 to RM600 salary. If I force companies to pay them RM1,500, they will soon be out of a job," he said during the launch of the Microcredential HRD Corp initiative, an initiative aimed at providing individuals with short courses to upskill themselves professionally.
The exemption was made after requests from the Prime Minister, and the Cabinet. The government will give a one-year period of flexibility for any party in need, and this could be extended according to the minister's purview.
The medical sector speaks out.
Weighing in for the medical side, the Malaysian Medical Association (MMA) claims that the minimum wage hike could place a larger burden on small clinics run by general practitioners.
Why? According to MMA President Dr Koh Kar Chai, the clinics, especially independent ones, can be considered as low-income earning businesses. He said that their consultation fees are controlled under the Private Healthcare Facilities and Services Act 1998, and that their charges in general, are controlled by third-party administrators.
The increase in minimum wage would then be a burden because the general practitioners don't have the avenue to increase their medical charges to compensate for the higher wage of employees. He also added that most of the staff hired in private clinics are not trained medical assistants or nurses.
"Private clinics are not like other sectors where price increases can be passed on to the consumers," he said. "The healthcare practice is heavily regulated."
He said that while a minimum wage would allow for a higher quality of living, the provision of quality primary healthcare at affordable rates to the public is also essential to the maintenance of the health of the country.
There are two sides to a coin.
Although the opinions given do raise certain valid questions, there exists a divide in opinions about the raise. Because yes, it will cost the employers more at the end of the day, but on the other hand, the employees can earn more money to help them get by. As it stands, there remain many who are still struggling to make ends meet with minimum wage.
The feasibility of a 4-day work week was also brought up recently, and it was subsequently shot down after most Malaysian employers admitted they aren't ready for that shift because it would incur more costs.
So, what will happen then? The answer is unclear, unfortunately. For some companies who are struggling, the increase in minimum wage could actually run them to the ground. But what of the struggling employees then? How can they afford a roof over their heads while working in a world where the prices for basic things like vegetables are increasing?
The minimum wage hike will take effect starting May 1, 2022. For now, some sectors are given some flexibility, but only time — and evidence — will tell what's in store for the employment market.
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Cover image sourced from Miera Zulyana / Yahoo! News and Free Malaysia Today (FMT).
