New Minimum Wage Rate Not Yet Decided By Cabinet - Ramanan

KOTA BHARU, Sept 29 (Bernama) -- The government has yet to make a decision regarding the new minimum wage rate, including claims that it would be raised to RM2,000, RM2,100, or RM2,200, said Human Resources Minister Datuk Seri R. Ramanan.

He said any announcement concerning the new rate would only be made after obtaining approval from the Cabinet, including Prime Minister Datuk Seri Anwar Ibrahim.

“I see parties out there eagerly clamouring to announce minimum wage rates of RM2,000, RM2,100, or RM2,200. Wait for the Prime Minister to make the announcement first, given that a decision has not yet been reached.

“I have just submitted the deliberation paper the Cabinet memorandum seeking a decision on the minimum wage rate for the upcoming Cabinet meeting to obtain approval from the Cabinet and Prime Minister Datuk Seri Anwar Ibrahim,” he said.

He told reporters after attending the State Investiture Ceremony held in conjunction with the 57th Birthday Celebration of the Sultan of Kelantan, Sultan Muhammad V, at Istana Balai Besar here today.

Earlier, Ramanan headed the list of 767 recipients of state awards and medals in conjunction with Sultan Muhammad V’s 57th birthday celebration.

He was conferred the *Ahli Yang Kehormat Yang Pertama (Seri Paduka)* of the *Darjah Kebesaran Jiwa Mahkota Kelantan Yang Amat Mulia* (SJMK), which carries the title 'Datuk'.

The media previously reported Anwar saying that the RM1,700 minimum wage rate is expected to be raised, with details to be announced during the tabling of the 2027 Budget on October 9.

Elaborating further, Ramanan said he was unaware of the source of the new minimum wage figures currently being discussed, as any decision requires prior Cabinet approval.

“As the Minister of Human Resources, I do not wish to comment on the specific amount because I am not the sole decision-maker. It is indeed my hope to raise wages as much as we can," he said.

He noted that various parties, including unions and non-governmental organisations (NGOs), have proposed raising the minimum wage to RM3,000 or RM4,000; however, setting such a rate requires a specific formula and a comprehensive impact study.

He explained that the process involves a group of experts, including academics, who will examine the implications of any proposed rate before a recommendation is submitted for the government's consideration.

"Even an increase of RM10 has an impact. Only after the study is conducted will a decision be reached on whether the minimum wage can be raised and by how much without adversely affecting the economy," he said.

Ramanan added that the government must also consider the impact of a minimum wage hike on inflation to ensure that any adjustments truly benefit workers without harming the national economy.

"We also want to control inflation. If wages are raised significantly but inflation rises in tandem, what is the real difference? Therefore, all these matters must be handled correctly," he said.

-- BERNAMA