Unions appalled at meaningless minimum wage increase

Press Statement by 10 Malaysian Trade Unions on 7 September 2018

Ten unions from across Malaysia were appalled at the Prime Minister’s Department 5 September announcement that the minimum wage would be increased to a mere RM 1050 on 1 January 2019, saying that the proposal fails to allow workers to live a life of dignity.

“The Pakatan Harapan manifesto gave many workers hope that a RM 1,500 minimum wage might be a reality soon”, said N Gopal Kishnam, Secretary-General of the National Union of Transport Equipment and Allied Industries Workers. “Considering the already stagnant state of working class wages against the rising costs of living, RM 50 a month is utterly meaningless.”

Earlier this year Bank Negara outlined that the estimated cost of living for a single worker in Kuala Lumpur was RM 2,700, and for a couple with two children it is RM 6,500.


“The gulf between what Bank Negara has said is needed for a minimum acceptable standard of living and the proposed new minimum wage of RM 1,500 defies comprehension”, Kishnam continued.

The unions agreed that the 2019 minimum wage increase should have been set at RM 1500 (including standardisation across Sabah and Sarawak), but also noted that there was a serious need to establish a tangible pathway to lifting the minimum wage to the living wage level of RM 2700 within five years.

President of the Malayan Nurses Union Nor Hayati Binti Abd Rashid said that low wages have created deep impacts across the economy, since stagnant wages lead to stagnant consumption.

“The World Bank has said that Malaysia will achieve high-income status by 2020, but our deeply unequal distribution of wealth means that many too many workers are being left behind”, said Rashid.


“Lifting the wages of the lowest paid workers in the country does more to guarantee that capital will be pumped back into the economy, because low paid workers spend their money, unlike wealthy executives.”

General Secretary of the Timber Employees Union of Peninsula Malaysia Nor Azlan Yaacob said that the common conception that the minimum wage is only for workers that are starting out is simply not true.

“In our experience, without a union onsite in a position to collectively bargain, it is very rare for employers to take the initiative to lift wages by themselves”, said Yaacob. “Our industries – wood processing, pulp and paper and furniture – are key export industries that generate a lot of revenue, and yet workers are often paid at or just above the minimum.”

“Workers have little to be happy about in this proposed wage revision.”


Endorsed by :

1. Electronic Industry Employees Union Western Region

2. National Union of Transport Equipment and Allied Industries Workers

3. Malayan Nurses Union (MNU)

4. Timber Employees Union of Peninsula Malaysia (TEUPM)

5. Sabah Timber Industry Employees Union (STIEU)

6. Union of Forestry Employees Sarawak (UFES)

7. Union of Employees of Construction Industry (UECI)

8. Malay Forest Officers Union (MFOU)

9. Perbadanan Kemajuan Negeri Selangor (PKNS) Union

10. University Malaya General Staff Union (UMGSU)