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The Star
31-07-2025
- Business
- The Star
Labour market reforms under 13MP for competitive, sustainable ecosystem
KUALA LUMPUR: The 13th Malaysia Plan (13MP) for the period 2026 to 2030 will introduce comprehensive labour market reforms to create a more dynamic, competitive and sustainable employment ecosystem. According to the 13MP document released by the Economy Ministry on Thursday (July 31), the reforms are in line with the aspirations of the Madani Economy, focusing on increasing local workers in highly skilled jobs with competitive salaries while reducing dependence on foreign workers. The document states that the government targets a significant reduction in foreign workers to 10% of the total workforce by 2030, and further to 5% by 2035. "The government will implement the Multi-Tier Levy Mechanism (MTLM) starting 2026, which imposes different levy rates based on the level of sector dependence on foreign workers and the proceeds are channelled into the Trust Fund to promote automation and mechanisation," the document said. The conditions for issuing Temporary Work Visit Passes will also be tightened, including eligibility criteria for changing employers and sectors, barriers to doing business and setting a shorter working year limit. In line with this, local workforce participation will be enhanced through programmes such as the Academy in Industry (ADI), with priority given to matching jobs to local participants before approving the hiring of foreign workers. "Foreign worker applications will be required to go through a clearinghouse that will be established to facilitate the matching of ADI programme participants first before approval. This measure will ensure that local workers are given priority to fill vacant positions," according to the document. In terms of providing accommodation facilities, the document states the importance of providing comfortable facilities close to the workplace as an important factor in attracting local workers. "Various initiatives will be introduced to encourage employers to provide adequate accommodation facilities, while related acts and regulations will be reviewed to ensure the welfare and safety of workers are guaranteed," according to the document. The labour market reform also emphasises harmonising the wage system by empowering the National Wage Consultative Council and implementing periodic reviews of the minimum wage based on the concept of a living wage. "The role of this council will be expanded to include setting the starting salary of graduates, including Technical and Vocational Education and Training (TVET) graduates, as well as regulating the implementation of the Progressive Wage Policy (PWP)," according to the document. To improve the well-being of workers, the government will explore new mechanisms to guarantee continuous income after retirement through the separation of Employees Provident Fund (EPF) contributions into two main components, namely retirement savings and monthly pensions. "Other initiatives include the drafting of specific legislation for gig workers to guarantee their welfare including the right to work in a safe, healthy and conducive environment as well as improving protection from occupational disasters covering accidents outside working hours and not related to work," according to the document. Based on the document, the achievements of the 12MP showed, among others, that the country's labour market has improved with the unemployment rate decreasing to 3.2% in 2024, compared to 4.5% in 2020. The composition of skilled workers has increased from 29.6% in 2020 to 30.2% in 2024 and the full implementation of the PWP which began in early 2025 with a target participation of 50,000 workers. "Efforts to improve workers' salaries have successfully increased the monthly median salary and wage to RM2,602 in 2023, from RM2,076 in 2020," according to the document. Other achievements of the 12MP include the registration of 20,088 participants for the ADI programme until 2024 while the skills upskilling and reskilling programme under Pembangunan Sumber Manusia Berhad successfully trained 3,886,470 workers from 2021 to last year. - Bernama
The Star
31-07-2025
- Business
- The Star
Minimum wage to be expanded to cover grads, semi-skilled workers, says PM Anwar
KUALA LUMPUR: The minimum wage policy will be expanded to cover graduates and semi-skilled workers, says Datuk Seri Anwar Ibrahim. The Prime Minister said this will include Technical and Vocational Education and Training (TVET) graduates classified under Masco code 8 and above. 'This effort is aimed at ensuring fair wages that reflect the qualifications and skills of our workers,' he said when tabling the 13th Malaysia Plan (13MP) in the Dewan Rakyat on Thursday (July 31). Anwar said that under the 13MP period, Malaysia aims to create 700,000 new jobs in the manufacturing sector and another 500,000 career opportunities in the digital economy. He also announced that the role of the National Wage Consultative Council will be strengthened, while the e-Masco portal will be enhanced as a more transparent and responsive mechanism for wage monitoring. 'At the same time, the government is encouraging major companies to provide decent living wages, as already practised by government-linked investment companies (GLICs) and government-linked companies (GLCs),' he said. According to Anwar, the Madani administration has successfully raised the minimum wage twice, from RM1,200 to RM1,500, and subsequently to RM1,700, through minimum wage orders, the Progressive Wage Policy and public service salary reforms (SSPA). For GLC and GLIC employees, he said the living wage benchmark has been set at RM3,100 per month. TVET graduates, he said, are also earning increasingly competitive salaries, with most surpassing the RM1,700 minimum wage threshold. 'A total of 95.6% of TVET graduates have secured employment within six months of completing their training,' he said. To further enhance the labour market, Anwar said the government will expedite efforts to streamline wage structures to ensure workers receive a fairer share of the nation's economic growth. Follow us on our official WhatsApp channel for breaking news alerts and key updates!
