KUALA LUMPUR: Not paying the RM1,700 minimum wage to foreign workers will ultimately see the local labour force losing out, says Human Resources Minister Steven Sim.
He said that if foreign workers’ wages remained low, the labour market would lean towards that direction.
“Employers will prioritise foreign workers and wages for locals will also be dragged down,” he said when winding up debates on the 13th Malaysia Plan in the Dewan Rakyat on Thursday (Aug 21).
“If we let the labour system pressure certain groups, the same system will jeopardise all Malaysians,” he said.
According to Sim, at least 4.37 million workers – 80% of them Malaysians – were paid less than RM1,700 a month before the increase in minimum wage.
“(Increasing wages) actually benefits Malaysians the most,” he added.
He said statistics also show that Malaysian workers whose wages were in the lower tiers enjoyed a 60% increase overall since the minimum wage mechanism was introduced in January 2013
According to Sim, the Employment Act 1955 also clearly states that minimum wage should be paid to all workers regardless of their citizenship.
“It is not just legislation but a symbol of our humanity.
“It’s about doing the right thing,” he said.
Gimino, G., Yunus, A., & Tan, T. (2025, August 21). Denying foreigners minimum wage will only hurt local workforce, says Sim. The Star https://www.thestar.com.my/news/nation/2025/08/21/denying-foreigners-minimum-wage-will-only-hurt-local-workforce-says-sim
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