Latest MEF Research Publications 2018 - Order Now!
Order one today!
Act now! Get one today!
jQuery Carousel
Member Login

  User ID
Forgot Password
MEF Events
22Kelantan Area Meetings22 January 2019
22Southern Regional Meeting22 January 2019
24Perak Area Meetings24 January 2019
30Hotel Group Meetings30 January 2019

MEF Academy Events
 23Criminal Misconduct in Employment23 January 2019
 23HR For Beginners23 - 24 January 2019
 24Formation of an Effective Safety & Health Committee24 - 25 January 2019
 29Mind Your Business English for Executives & Non-Executives29 - 30 January 2019
 29Behavioral Events Interviewing Skills29 - 30 January 2019
 21Understanding Labour Laws21 - 22 February 2019
 25Domestic Inquiry25 February 2019
 26Industrial Relations Act 196726 - 27 February 2019
 05Memahami Akta Kerja 19555 - 6 March 2019
 12Disciplinary Procedures12 -13 March 2019
 02Understanding Labour Laws2 - 3 May 2019
 08Collective Bargaining & Collective Agreement8 - 9 May 2019

MEF Press Release

Employers Surprised by Second Minimum Wage HikeFriday, 2 November 2018
Press Release

​MEF was taken aback by the Budget 2019 announcement by Minister of Finance YB Tuan Lim Guan Eng in Kuala Lumpur today who arbitrarily raised the national minimum wages to RM1,100 nationwide. 

On Sept 5, 2018, the Prime Minister's Department, based on the recommendations of the National Wage Consultative Council (MPGN) that conducted a review of the Minimum Wages Order 2016 rates of RM1,000 for Peninsular Malaysia and RM920 for East Malaysia, announced RM1,050 as nationwide minimum wages with effect from 1st January 2019.The new minimum wages rates as announced in Budget 2019 was not in accordance with the procedure as laid down in the National Wages Consultative Council Act 2012.

MEF Executive Director Datuk Hj. Shamsuddin Bardan stated the decision to further increase the minimum wages would impact the cost of doing business, and unfair to employers who are required to implement the new minimum wages on 1 January 2019.

“Besides the obvious cost impact, there would also be higher remittance of the Ringgit to the source countries of the foreign workers, who had already been given an indirect pay hike of about 15 % early this year following the government’s decision to shift the burden of paying levy to the employers.”

“Companies dependent on foreign workers would be further impacted by the introduction of the multi-tier levy system that would be implemented effective on 1 January 2019,” he added.

He said employers would also be impacted by the new tax regimes that was introduced in the Budget 2019.

However some of the other provisions of Budget 2019 such as the direct allocation for skills development, encouraging the participation of women and retirees in the workforce, policies to encourage R&D, and financial and technical support for SMEs to move up the value chain were refreshing.

“The ‘Malaysia is open for business’ policy provides much encouragement for the private sector employers and investors. The budget allocation of RM314.5 billion – the biggest ever so far – was very encouraging.

budget,  minimum wage,  foreign workers
/Side Banners/PEMUDAH_170x80.jpg
/Side Banners/BLESS_170x48.jpg
/Side Banners/KWSP_170x104.jpg
/Side Banners/TalentCorp_170x55.jpg
/Side Banners/JobsMalaysia_170x92.jpg
/Side Banners/ilmia_170x52.jpg
/Side Banners/MysIDC_170x48.jpg
/Side Banners/ace_170x153.jpg
/Side Banners/ioe_170x95.jpg
/Side Banners/cape_170x50.jpg
/Side Banners/ilo_170x90.jpg

   ©  Copyright 2019 Malaysian Employers Federation  |  All Rights Reserved.