Human resources minister Steven Sim said the NWCC, a tripartite council consisting of representatives from employers, employees and the government, had discussed its findings from reviewing the minimum wage.

He also said the minimum wage was important, noting that it had helped those in the bottom 10% see a wage growth of up to 60% in the past decade.

“So it is very, very important, it is very, very crucial that we are doing it… as I always stress, via tripartite consultation with workers, employers, as well as the government,” he was quoted as saying in a Bernama report.

However, Sim said the government did not believe in raising wages solely through legislation or mandates.

For that reason, he said the government was piloting the Progressive Wage Policy, beginning in June, where the government subsidises employers to pay their employees higher wages.

“Workers taking part in this programme will have to go through 21 hours of skills training because we want to ensure higher pay commensurate with up-to-date skills to improve productivity,” he said, adding that 430 companies and 1,200 workers are currently participating in it.

The Progressive Wage Policy aims to raise wages, achieve balanced income distribution, and reform the labour market to increase workers’ incomes in line with productivity gains.

On March 14, Sim said the government would review the minimum wage this year, as the last review took place in May 2022 when the minimum wage was increased from RM1,200 to RM1,500.

On a separate matter, Sim said the ministry was working to consolidate RM2.6 billion in skills training resources to create a highly accessible and affordable skills training ecosystem for Malaysians.