PUTRAJAYA: The Human Resources Ministry will announce a new minimum wage in 2018 to bridge the income gap between Peninsular Malaysia and East Malaysia.
Its minister Datuk Seri Richard Riot Anak Jaem said the National Wage Consultative Council (MPGN) will the study the feasibility of the move to benefit all.
He said this is was in light of the plea made by Malaysians residing in Sabah, Sarawak and Labuan to address the high cost of living there.
"The main reason for the income gap is the median wage, which is the difference in employers' capability and capacity in both parts of the country, to pay wages to their employees and that's why the minimum income is lower in East Malaysia," he told reporters today.
Riot, however, said the government was able to narrow down the income gap in the last two wage reviews.
"In the first review, the salary difference was RM100 where private sector workers in East Malaysia was paid RM800 while those in West Malaysia were paid RM900.
"In the review which was done last year, we have managed to bring the gap closer whereby the minimum wage in East Malaysia is RM920 while employees in West Malaysia are paid RM1,000.
"It is my hope to streamline the income gap whereby both east and west Malaysia will have a standard income one day," he added.
Riot was met after he handed over appointment letters to 25 new representatives of the National Wage Consultative Council.
The representatives are appointed for three years, beginning this month, to study, review and advise the government on minimum wages for private sector employees.
"For the first time, the ministry have appointed two representatives from the Sabah and Sarawak State Secretary Offices, to represent people in both states when reviewing the minimum wage next year.
"I hope with their appointment workers in East Malaysia will have a better representation," he added.