Positive Impact Of Minimum Wage In Malaysia

The current minimum wage is rm1 000 in peninsular malaysia and rm920 in sarawak and sabah.

Positive impact of minimum wage in malaysia. Leufy help edu my abstract the minimum wage policy in malaysia was announced in 2012 and it is expected to be implemented in all stages by the year 2013. The government has mandated that the new rm1 200 monthly minimum wage be implemented on jan 1 2020 in 57 cities and towns across malaysia. Its impact and the readiness of firms joyce leu fong yuen department of business studies help university kuala lumpur malaysia. An effect of higher minimum wages is that firms respond to an increase in costs by passing some of the costs onto consumers.

Restaurant prices in california have increased as a result of the rise in the minimum wage. The differences in poverty reduction can be explained by the limitation of minimum wages to promote wages of informal workers among the malays and chinese. A study looked at the effects of a 25 minimum wage increase in 2013 in the area of san jose california. Kuala lumpur nov 2 after workers protested against the minimum wage quantum set at rm1 050 monthly the government today raised it to rm1 100 starting january 1 next year.

Therefore minimum wages could be more effective as a poverty reduction tool if informal workers are covered in the scope. The short term costs and risks of the minimum wage policy on infl ation are expected to be well contained. Over the medium to long term the minimum wage policy is expected to have a positive impact on the malaysian economy.