Senator Zurainah Musa cited Indonesia as an example of a country where minimum wages were set according to locality.

“I urge the government to consider implementing minimum wage by district and state, as each locality has different living costs.

“A minimum wage of RM1,700 in Kuala Lumpur may be insufficient but it could be enough for a worker in a rural area.

“When targeting subsidies, we take into account the living costs and family expenses. Why can’t we do the same to determine minimum wages?” she said during the debate on the Supply Bill 2025 at the Dewan Negara today.

Senator A Kesavadas suggested that the government adopt the approach used in New Jersey, US, where the minimum wage rate has been gradually increased every year since 2011.

Kesavadas said the country could consider raising the minimum wage to RM1,600 next year and then increase it by 6.6% each year for the next five years.

“By 2026, it will rise to RM1,696, followed by RM1,797 in 2027, RM1,904 in 2028, eventually reaching RM2,018 in the fifth year.

“This approach will be more manageable for employers,” he said, explaining that the proposed 6.6% rate increase was based on double the current inflation rate.

Kesavadas also suggested that the government grant exemptions to micro businesses with an annual income below RM500,000.

During the debate, a proposal was also put forward for the government to introduce a dedicated digital subject at the primary school level.

Senator Fatmi Che Salleh said this is crucial to equip the younger generation with the skills needed to tackle future digital challenges through a well-designed curriculum.

The proposal was later seconded by Zurainah, who said this would not be difficult to implement given that young people today are gadget-savvy, making it easier for them to adapt.

The Dewan Negara session resumes tomorrow.