Prime Minister Datuk Seri Ismail Sabri, at the JaminKerja event in KLCC Convention Centre here, made an announcement that the government will incentivise companies for employing locals for jobs usually reserved for expats or foreign workers.
This comes as the nation finds itself in a precarious position with unemployment rising to an alarming level and at the same time employers up in arms over the lack of workers taking up the available jobs.
Sectors like oil and gas or education hire expats often with lucrative wages when some of the jobs could be given to capable Malaysians. With borders closed and the pandemic yet to subside, employing a foreign workforce will also be more expensive.
In view of this scenario which is expected to continue for a period of time, it will be recommended that employers find alternative solution instead of hiring foreigners he added.
Seperately, the government has said that it is holding engagement sessions with employers on the RM1,500 minimum wage to enable it to be implemented holistically. The PM said for this purpose, the Ministry of Human Resources (MOHR) is holding discussions with unions, including with the Congress of Unions of Employees in the Public and Civil Services (Cuepacs), and employers.
“We are undertaking engagement with all employers on this minimum wage, because there are companies that can afford it but also companies that are too small and can’t. We are afraid that if they can’t afford it, they will retrench workers… this will add to unemployment numbers. “We are not protecting employers, our interest is employees… if employees’ minimum wage can be raised to RM1,500, that is for the best,”
He said the government was concerned about the cost of living now, but at the same time did not want Small and Medium Enterprises (SMEs) and micro SMEs to face difficulties regarding the implementation of the new minimum wage.
“Our aim is to help employees, but eventually they may be laid off because employers cannot afford to pay their salaries … so we will look at the overall considerations, the interests of employees and at the same time we want to hear the views of employers,” he said.
Human Resource Minister Datuk Seri M. Saravanan recently told the media that a new minimum wage of RM1,500 is expected to be implemented by year-end.
Malaysia’s current minimum wage is at RM1200, in Singapore its $1274, Thailand pays US$10 a day which equals to RM1050 per month and in Indonesia workers are paid approximately RM1165 a month.
