The Social Protection Contributors Advisory Association Malaysia said maintaining the RM1,500 minimum wage will be seen as a “victory” to big businesses who managed to persuade the government to continue with this “exploitative system”.

“The (human resources) minister’s statement was positioned as though a favour is being done for workers in the country by not lowering the minimum wage. But it is an insult to workers.

“The minimum wage has to be set at the ‘decent income’ level, and any type of productivity bonuses or wages should be in addition to the minimum wage,” said Callistus Antony D’Angelus, the group’s international labour adviser.

D’Angelus cited a 2018 study by Bank Negara Malaysia which found that the decent income for a worker to take part meaningfully in the society is RM2,700 a month.

Yesterday, human resources minister V Sivakumar said the RM1,500 minimum wage will be maintained when the progressive wage system is introduced next year.

He said the progressive wage system will be practised in tandem with the minimum wage and increase the productivity of workers so that employers will benefit as well.

The progressive wage system will provide for gradual and phased wage increases to keep pace with economic growth.

D’Angelus said the government should introduce a wage ceiling to prevent abuses by company executives in rewarding huge bonuses and shares for themselves.

“The government should consider instituting a ratio between the lowest paid and highest paid worker in an organisation to address the wealth and income gap, which is a main factor contributing towards the acute cost of living crisis in the country,” he said.