Describing Nor Shamsiah’s stance as “shallow and regressive”, the Ipoh Barat MP warned that Malaysians may soon be enticed to work in neighbouring countries like Vietnam and Indonesia, where he said wages have “drastically improved” over the years.

“I urge BNM to retract its statement and come out with more progressive ideas like that of Singapore’s Progressive Wage Model (PWM), where it cultivates a drive to increase wages through upgrading skills and improving productivity,” he said in a statement today.

Nor Shamsiah previously said the new RM1,500 minimum wage should be implemented in phases to prevent disruptions to the economy. She said that firms most affected by the Covid-19 pandemic should be given time to adjust to the new minimum wage.

The new minimum wage marks a 25% increase from the previous minimum wage of RM1,200 implemented in 2020.

Stating that the implementation of the new minimum wage would need to take into account the uneven recovery across industries, Nor Shamsiah also said it was crucial the increase be done in an orderly manner to support growth and prevent inflationary measures.

Kula reminded Nor Shamsiah that BNM had in 2018 defined the living wage, or the level of income needed for a household to afford a minimum acceptable standard of living, and that it was much higher than the new minimum wage.

“(BNM) indicated that the living wage in Kuala Lumpur for a single adult was RM2,700 (in 2018). For a couple without a child, it would be RM4,500, and for a couple with two children, it would be RM6,500,” he said.

“Yet, it (BNM) is aiding an attempt to prevent the rise of the minimum wage to even RM1,500. Is BNM going against its own findings?

“BNM should always remember that while it speaks for the government and employers, employees are also part of its stakeholders, and it must never forsake their interest.”