Prime Minister Datuk Seri Najib Tun Razak has promised to introduce minimum wage by year-end, with the setting up of the National Wages Consultative Council. Shamsuddin Bardan, CEO of the Malaysian Employers Federation discusses the issues surrounding minimum wage and gives his views on the policy.

- MEF is still hoping the government reconsiders the introduction of national minimum wages, as it believes such a move will not be healthy to the economy

- It says wages should be determined by market forces, rather than an third party

- MEF discusses its views on the potential issues surrounding the National Wages Consultative Council bill:
(a)  the imbalance in the composition of the council members
(b)  the powers mandated to the minister of Human Resources - should the minister has the power to override the decisions of the council?
(c)  the provisions of the bill is considered to be harsh

- If the policy is implemented, the taxation scheme must be re-analysed to reduce costs for business operators