Latest news with #StevenSim
Malay Mail
7 minutes ago
- Malay Mail
Human Resources Ministry opens two probes into Johor bus company following driver strike over salary cuts and excessive overtime
PUTRAJAYA, July 22 — The Ministry of Human Resources (KESUMA) has opened two investigation papers against a transport company following a bus driver strike at the Sultan Iskandar Building (BSI) in Johor Bahru on Sunday. In a statement today, the ministry said that initial findings by the Department of Labour Peninsular Malaysia (JTKSM) have found that the strike is linked to unresolved worker grievances, including unexplained salary deductions, the abrupt removal of special duty allowances, as well as unpaid overtime claims. 'Many drivers were reluctant to lodge formal complaints due to fear of retaliation. To avoid a repeat of the incident, JTKSM conducted early-morning checks at the premises today and found no further disruptions,' the ministry said. KESUMA also revealed that the company had previously violated the Employment (Overtime) Regulations 1980 by recording over 104 hours of overtime in a single month during operations conducted on July 17. The same operation saw KESUMA inspect 32 companies, resulting in 34 investigation papers, with 30 under the Employment Act 1955 and four under the Employees' Minimum Standards of Housing, Accommodation and Amenities Act 1990 (Act 446). The ministry reminded employers to comply with all provisions of the Employment Act, particularly those related to lawful salary deductions. Violations can result in fines of up to RM50,000 per offence. It noted that Human Resources Minister Steven Sim has instructed strict enforcement without compromise against companies failing to comply with labour laws. Workers facing issues such as wage deductions, unpaid overtime or mistreatment are encouraged to file complaints with JTKSM via the hotline at 03-8886 5192/5937 or email [email protected]. — Bernama
Malay Mail
6 hours ago
- Business
- Malay Mail
‘Don't play the fool with workers': HR minister warns Johor bus firm after strike over pay cuts affects Causeway commuters
KUALA LUMPUR, July 22 — Human Resources Minister Steven Sim today issued a terse warning to the Johor-based bus company whose workers went on strike yesterday, vowing action on claims the firm had allegedly violated labour laws by cutting drivers' wages. Sim said the same operator had been under Labour Department scrutiny for some time for having breached the Employment Act in the past — and this latest allegation may have been the last straw that would prompt swift and stern punishment. 'I want to give a warning to this particular company: Do not play with our Employment Act. This is not the first time this company has a case,' the minister said while delivering a speech at the launch of World Bank's report on inclusive employment practices here. 'We had an operation, I think, last week or two weeks ago, and they [had not] complied with the Employment Act so we are initiating investigation against them under this Act. 'So don't play the fool with our workers,' he added. Thousands of Malaysian workers commuting to Singapore were affected yesterday after some 100 shuttle bus drivers to the republic went on strike starting at 5am. Berita Harian reported that Malaysians and other visitors to Singapore were stranded at major bus stops as well as the Sultan Iskandar Building. Out of options, some workers opted to walk over the border along the Johor Causeway. A bus driver told the paper that the strike was due to unhappiness over wage cuts, claiming that the bus company involved had cut their salaries by nearly a third. Previously, the driver who only wished to be known as Atoi said, bus drivers were earning around RM2,800 to RM2,900 but were now being paid less than RM2,000.
The Star
4 days ago
- Business
- The Star
STRENGTHENING WORKERS' RIGHTS, ENHANCING PRODUCTIVITY
Kuala Lumpur: Malaysia is firmly on track to building a more progressive and equitable labour market. 2025 marks the implementation of two key initiatives – the new Minimum Wage Order (MWO) and the Progressive Wage Policy (PWP) – aimed at strengthening workers' rights, boosting labour productivity and fostering a more inclusive and sustainable national economy. Progressive wages The MWO came into effect on Feb 1 for employers with five or more employees, as well as for employers in the professional sector regardless of employee count. 'For employers with fewer than five employees, the effective date is Aug 1, a move that will ensure workers receive a minimum basic wage of RM1,700 per month, in line with the rising cost of living,' says Human Resources Minister Steven Sim recently. 'The government introduced PWP as a comprehensive, long-term measure that takes a productivity-based approach. It links wage growth to skills development and employee contributions,' he continues. Formally implemented in January this year, the policy follows a pilot phase held between June and August last year. This shows a shift in strategy during the 12th Malaysia Plan Mid-Term Review, to raise wages and ensure a balanced income distribution. Opportunity in both ways The PWP is guided by three main principles: voluntary participation, incentive-based structure and a strong link to productivity. Registered local companies will receive monthly cash incentives up to RM300 per employee once registered until December 2027, depending on the employee category and wage increment achieved. Entry-level workers will receive a maximum incentive of RM200 per month. If the wage gap between the employee's current salary and the entry-level wage specified in the PWP Implementation Guideline exceeds RM200 per month, employers must raise wages by at least RM200. If the gap is less than RM200, the wage increase must be aligned with the guideline's recommendation. Non-entry level employees can fetch incentives up to RM300, based on their annual wage increment achieved. Employers must meet minimum 21 hours per year training requirements as one of the prerequisites for PWP incentive claims. However, 21 hours training that were not completed in 2025 can carry forward until December 2026. This allows employees to complete a minimum of 42 hours in 2026, or have undergone Recognition of Prior Achievement (RPA). In 2027, employees should have a minimum of 21 hours, or completion of RPA, which allows them to upskill and become more competitive. Employers will benefit from a more capable and productive workforce. Strategic investment 'PWP represents a smart long-term investment for employers. Besides the financial incentives, it helps companies boost operational efficiency by building a more skilled and motivated workforce,' explains Sim. Participating companies will also be recognised as Progressive Wage Employers – a status that enhances the organisation's credibility and reputation among clients, employees and industry peers. 'This will be vital for local businesses and micro, small and medium enterprises (MSMEs), which make up 97% of the country's industrial landscape, Through PWP, these businesses can strengthen their competitiveness while contributing to a more resilient and sustainable labour market,' he elaborates. Contributing to nation's growth In the macroeconomic viewpoint, PWP is expected to contribute significantly to national growth. Higher household incomes will stimulate domestic demand, which supports GDP growth. A fairer wage structure will attract higher-quality investments and reduce reliance on low-paid foreign labour. With an initial RM200mil allocation under Budget 2025, the PWP aims to benefit 50,000 workers in its initial phase. This could make Malaysia a high-income nation with the workforce as a key driver of progress, and toward a more progressive wage system. With fairer wages, the people's purchasing power increases, companies become more competitive and result in a more balanced, inclusive national economy. It will elevate Malaysia to the ranks of high-income nations that prioritise dignity, values and quality of life. As of July 2025, a total of 173,325 individuals have registered for the MADANI Workers' Card, with 147,534 completed applications submitted. And so far, 11,587 workers have successfully received their digital cards, while the rest are currently undergoing the verification process by their respective unions. Building the future today PWP also sends out a clear message that Malaysia's economic growth must be underpinned by a fair and forward-looking wage system, not just minimum wage compliance or periodic salary adjustments. 'Progressive Wages, Thriving Workers' is a call to value labour, not just as a source of productivity, but as a national asset for advancement. 'PWP is an opportunity for Malaysia to build a fairer work environment where businesses can grow alongside workers, and the economy to be more competitive,' stresses Sim. 'We encourage employers to join PWP, not just a social responsibility move, but a smart business strategy. Employees can also take this chance to embrace the upskilling opportunities provided. 'Only through strong collaboration between the public sector, the private and the workforce can the MADANI aspiration – of a values-based, socially just economy – be fully realised,' he says. Sim adds that a job that rewards fair wages restores not only income, but dignity and recognition for every worker. To learn more or to register for the PWP, visit:
The Star
4 days ago
- Business
- The Star
Sim walking the talk for TVET
KUALA LUMPUR: In a move to champion technical and vocational education and training (TVET), Human Resources Minister Steven Sim will be sitting for the Malaysian Skills Certificate (SKM) to pave the way for its importance. Sim is aiming to excel with some 100 industry leaders in the 5th level of the SKM, which is the highest band – for now. The 5th level is the equivalent to receiving an advanced diploma that can secure a job placement. 'The Industrial Revolution 4.0 is a TVET revolution. 'An education programme should be training individuals for the real world by making them learn on the job and by practice,' Sim said during the National Economic Forum 2025 held here yesterday. Sim said in order to invest in a long-term strategy to enhance the value of the country's economy, there is a significant need for diverse skills and talents. He said the Cabinet has agreed to table an amendment to the National Skills Development Act 2006 to increase the levels of SKM to 6, 7 and 8, to enhance the quality of TVET in the country. He said these levels were equivalent to an individual receiving a degree or a master's certification. 'We want to make sure the recipients are not just stuck at level 5 (advanced diploma), but to go all out to higher levels.' He also hopes that the Bill would be tabled in Parliament this year. 'Through TVET, Malaysia can pivot to a high-value, innovation-driven economy by building skilled talent.' He also claimed that traditional universities are not matched for the Industrial Revolution 4.0, which exists for skills. 'An education programme for our future generations should have two components. 'First, learning on the job, and second, learning by practice. 'In other words, a skills training programme or education programme for future talent must be able to adapt to the fast-paced changes in the industry.' He highlighted a flagship programme under the ministry known as Academy In Industry (ADI), which allows students to directly learn within the business environment, in the real world. 'Instead of sitting in classrooms, we want students to learn directly within the business environment,' said Sim while announcing that the programme has almost 2,000 strategic partners from the ministry and 10,000 participants (employees). 'When this programme first started, there were about 40 participants in the first batch. 'After six months of on-the-job, hands-on training, these trainees became so skilled that their future employers said they could expect a starting salary of RM6,000 per month – which is much higher than the minimum wage.' He also pointed out the Ilham programme, which aims to provide 20,000 structured internships focusing on job learning for a longer period without adding more time to their degree courses. 'Under this programme, we not only provide double tax deductions for all your internship expenditures, but allow small and medium enterprises (SMEs) in the outskirts to use Human Resource Development Corporation (HRD Corp) levy to pay their interns.' Meanwhile, Science, Technology and Innovation Minister Chang Lih Kang, who spoke during a plenary session, reiterated the government's commitment to exploring measures to lessen pressure on the business community amid concerns over rising operational costs and new taxes. Responding to calls for the Sales and Service Tax (SST) rate to be reduced to 4%, he said he would convey the concerns to the Cabinet, ensuring the Prime Minister is informed. Acknowledging the difficulties faced by businesses, he said, 'We hope we can relieve some of the burden on the business community. 'I acknowledge the situation is not easy, and discussions with my Cabinet colleagues will focus on how to achieve this.' He said this at the Chambers' Voice – Navigating Malaysia's Path Forward Fireside Dialogue with presidents of Chambers yesterday. When asked about the perceived gap between positive economic indicators and the challenges businesses experience on the ground, Chang highlighted the importance of not solely relying on figures. 'We realise there is always a gap between the indicators and what people are feeling on the ground. 'That's why we need to engage with the business community to understand the real issues they are facing. 'While reforms are aimed at long-term benefits, we must also consider short-term pressures,' he added. Malaysia's business community has been advocating for a revision of the SST, which recently increased from 6% to 8%, alongside concerns over the rising costs of doing business such as electricity tariffs and the planned reduction of fuel subsidies for RON95.
Malaysiakini
5 days ago
- Business
- Malaysiakini
HR Ministry to amend Act 652, elevate TVET to meet industry demands
The Human Resources Ministry is amending the National Skills Development Act 2006 (Act 652) to enable the recruitment of trainees and workers with Malaysian Skills Certificates (SKM) at Levels 6, 7, and 8. Minister Steven Sim said the legislation only allows for the hiring of individuals with SKM qualifications up to Level 5.
