Asian Insider

Malaysian firms resist minimum wage hike despite spending slump

Highly regarded studies have frequently debunked earlier thinking that higher minimum wages mean fewer jobs. PHOTO: REUTERS
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KUALA LUMPUR - Malaysia's plan to raise the minimum wage to "around RM1,500" (S$480) this year has led to a backlash from employers, who believe it will crimp economic recovery after a two-year struggle with Covid-19.

But other stakeholders believe an increase to the current minimum wage of RM1,200 in urban centres and RM1,100 in rural areas will give a much-needed boost to depressed domestic demand.

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