ANNOUNCEMENT 01 Jan 2013

In January 2013, the government of Malaysia announced a change for the labour market access of foreign workers.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising

SOURCE



New Straits Times, March 20, 2013, 'SMEs may defer minimum wages for foreign workers until Dec 31': http://www.nst.com.my/nation/general/smes-may-defer-minimum-wages-for-foreign-workers-until-dec-31-1.238218
Ministry of Human Resources, statement of February 21, 2013 (in Bahasa Malaysia): http://www.mohr.gov.my/index.php/en/archives/164-archive-2013/502-perintah-gaji-minimum-2012-berkuat-kuasa-sejak-1-januari
Unofficial English translation of the statement: http://www.mpma.org.my/Documents/Cir%20Min%20Wage_New%20Guidelines_%28Eng%29.pdf


Inception date: 20 Feb 2013 | Removal date: 20 Jan 2014
Still in force

Labour market access

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.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A