Global Trade Alert

As of January 1, 2013, a legal minimum wage has been introduced in Malaysia, requiring employers to pay employees at least 900 Malaysian Ringgit (RM) a month on the mainland and RM 800 in Sabah, Serawak and the Federal Territory of Labuan. However, due to complaints from SMEs, the National Wages Consultative Council (NWCC) has decided on February 20, 2013 to allow deferral of the minimum wage by SMEs for foreign workers until December 31, 2013. In order to be allowed the deferral, companies must request it at the NWCC before June 30, 2013. This deferral does not apply to nationals of Malaysia.
 
In terms of the GTA assessment, this measure is classified green due to the fact that it will render hiring foreign workers more attractive for employers during this period.