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Wednesday, October 27, 2021
HomeBusiness/NewsMinister Allegedly Proposed To Reduce Local's Minimum Wage From RM1,500 to RM1,200...

Minister Allegedly Proposed To Reduce Local’s Minimum Wage From RM1,500 to RM1,200 to Encourage Businesses to Employ Locals

The Malaysian government has introduced the Malaysianization Program as part of the improvements to the Penjana Kerjaya 3.0 under the Pemulih initiative.

Under this programme, it is said that the government will encourage businesses to employ the local workers instead of relying on foreign workers.

The Deputy Minister of Human Resources, Datuk Awang Hashim had suggested to reduce the local worker’s minimum wage from RM1,500 to RM1,200 so as to encourage employers to employ the locals.

He said this during the recent Parliament session, adding that the Malaysianization Program encourages employers to hire local workers for positions that were usually filled by foreign workers.

“Over the past year, a total of 107,024 people lost their jobs. Up until September, there were a total of 50,482 who had lost their jobs too.” he said in response to a question raised by Nik Mohamad Abduh Nik Abdul Aziz, as reported by HarakahDaily.

Meanwhile, Awang said the government had received 150,839 applications from employers to participate in the Wage Subsidy Program 4.0 under the Pemulih initiative.

This alone involves 1.88 million workers with a total amount of RM980.52 million being paid as financial assistance.

On a separate matter, he said the Ministry had amended the period of employment contract of the vulnerable groups from 12 months to 6 months, where the group includes workers aged 50 year-old and above, people with disabilities (OKU) and ex-prisoners.

He added that there were a total of 3,671 applications for the job seeking allowance (EMP) provided by the Social Security Organization (SOCSO) last month. He added that the allowance was extended to not only SOCSO contributes, but also new graduates.

What do you think about the policy suggested by Awang? Share your thoughts!

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