
Minimum wage extended to contract apprentices as amended act takes effect
In a statement, the Human Resources Ministry said Minister Steven Sim had set Aug 1, 2025, as the commencement date for the amendments.
"Under the amendment, the current minimum wage now applies to apprenticeship contract workers, in line with the government's commitment to enhancing protection and welfare for all categories of workers," the statement read.
An apprenticeship contract refers to an agreement in which an employer undertakes to employ and systematically train a person in a specific trade, ranging from six to 24 months, during which the apprentice is bound to work for the employer.
The ministry also expressed appreciation to employers who had already been paying the minimum wage to apprenticeship workers ahead of the legal requirement.
It then reminded employers paying wages above the minimum rate that they are not permitted to reduce salaries to match the statutory threshold.
The ministry announced that the Minimum Wage Order 2024 will take effect on Aug 1, 2025, setting a minimum wage of RM1,700 per month for employers with fewer than five employees who are not engaged in professional activities classified under the Malaysian Standard Classification of Occupations 2020.
The ministry urged employers to comply with the minimum wage laws enforced by the Peninsular Malaysia Department of Labour, Sabah Labour Department and the Sarawak Labour Department.
Employers found guilty of failing to do so face fines of up to RM10,000 for each affected worker, the statement concluded.– BERNAMA
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Sun
an hour ago
- The Sun
13MP – RM1 trillion semiconductor exports by 2030 target ‘ambitious yet achievable'
PETALING JAYA: Malaysia's plan to boost semiconductor exports to RM1 trillion by 2030, a centrepiece of the 13th Malaysia Plan (13MP), has been hailed as ambitious yet achievable by industry leaders, though economists warn that structural reforms will be key to ensuring the benefits translate into broader economic gains. Prime Minister Datuk Seri Anwar Ibrahim, in tabling the 13MP, identified semiconductors as one of the flagship high-growth, high-value industries vital to Malaysia's transition to high-income status and deeper integration into global technology supply chains. Malaysia Semiconductor Industry Association president Andrew Chan said the nation's recent performance and policy direction provide a solid foundation for the RM1 trillion export target. 'Malaysia's E&E exports reached RM601 billion in 2024, and with the global semiconductor market projected to double to US$1 trillion (RM4.23 trillion) by 2030, driven largely by the surge in demand for AI chips, Malaysia's RM1 trillion export target is both ambitious and attainable,' Chan told SunBiz. He highlighted RM319 billion in approved investments between 2021 and 2024, alongside the rollout of the National Semiconductor Strategy (NSS), launched in May 2024 and updated in July 2025, as pivotal enablers for the industry. 'These developments lay a strong foundation for growth,' he said, pointing to foreign direct investments from global giants like Intel and Infineon as well as the rapid scaling of local champions such as Inari and Vitrox. Chan stressed, however, that incremental growth would not be enough. 'Success will require us to make hard choices and sacrifices,' he said. 'It demands a deliberate pivot into high-value segments such as IC design, advanced packaging, semiconductor equipment manufacturing, wafer fabrication and particularly the design and production of AI chips and servers, where global demand will be most pronounced.' Chan noted that Malaysia's current strength lies in outsourced semiconductor assembly and testing services but argued that capturing greater value will require moving into front-end manufacturing and design, areas currently dominated by economies like Taiwan, South Korea and the United States. 'One area for greater focus is on a more coordinated talent development strategy, especially skills for the new growth areas. What got Malaysia to where we are today will not get us to RM1 trillion in E&E exports by 2030.' While agreeing that semiconductors will be a key growth engine, economist Professor Geoffrey Williams cautioned against viewing the sector's success as a panacea for Malaysia's broader economic challenges. 'These high-value sectors are largely market-driven, and government interference is often unnecessary,' he said. 'The most important features of 13MP are actually the social and structural elements, the extension of the minimum wage, the review of the retirement age and reforms to pensions and healthcare.' Williams argued that without parallel reforms to raise incomes, address underemployment and open up opportunities for SMEs, semiconductor gains risk being concentrated among larger corporations and global players. 'Technology and green growth are already unfolding organically,' he added. 'Structural reforms are needed to ensure these gains benefit the wider economy and address long-standing issues like wage stagnation and job quality.' The 13MP's semiconductor strategy builds on the NSS's targets to create 10 local companies with revenues exceeding US$210 million each, nurture 100 firms approaching US$1 billion revenue and train 60,000 skilled engineers by 2030. Economists say the combination of surging global demand, particularly for AI chips and Malaysia's established role in the electronics supply chain creates a unique opportunity. However, they warn that talent bottlenecks, infrastructure gaps and uneven SME participation must be addressed for the RM1 trillion target to translate into inclusive growth.


New Straits Times
8 hours ago
- New Straits Times
Malaysia to roll out regulatory reforms, other measures following US tariff deal
KUALA LUMPUR: Malaysia will roll out three key follow-up actions — an exporter outreach programme, regulatory reform and a nationwide supply chain mapping initiative — following the recent tariff renegotiation agreement with the United States which reduced tariffs on Malaysian goods from 25 per cent to 19 per cent. Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the agreement, effective Aug 1, was achieved after "months of intense but thorough as well as methodical negotiations". "Most importantly, we achieved this without conceding on our red lines in key areas," he said in his keynote address at The Edge Malaysia Centurion Club Awards 2025 here today. Tengku Zafrul said those red lines included foreign equity limits in strategic sectors, legal safeguards in digital companies, halal standards and many other areas. But the key point, he added, is that the negotiation package was a all-of-nation offer, not just the government, but all (Malaysians and Malaysian companies). With the tariff deal in effect, Tengku Zafrul said the government is focusing on three key areas, starting with an outreach programme to support industry players and exporters. "Some of you in this room may be impacted, but again we will engage the whole exporters' ecosystem — not just the multinationals, but all the small and medium enterprises that are supporting the major exporters," he said. Secondly, he said the government aims to accelerate industrial reforms by cutting bureaucracy and reviewing regulations to eliminate overlaps, outdated provisions and irrelevant processes. "Thirdly, we need to strengthen the resilience of our supply chain by fortifying specific industries' role in the global supply chain," he said. Tengku Zafrul said Malaysia is making good progress on a supply chain mapping project, which aims to identify every player involved in the economic activities of key industrial sectors. Meanwhile, he said Malaysia's mid-cap companies — defined as listed companies with a market capitalisation of between RM100 million and RM1 billion — remain critical to the country's growth ambition under the New Industrial Master Plan (NIMP) 2030. "For me and for our ministry, we view this award such as Centurion as one of the private sector's contributions to Malaysia's journey towards becoming a high-income, sustainable and globally competitive nation. "As of March 31, there are 519 such Centurions. And this speaks volumes about the vibrancy of Malaysia's mid-cap sector — a sector that is equally critical to our national economic aspirations," he said.


Malaysiakini
11 hours ago
- Malaysiakini
Ginormous RM1t bill for small tariff cut
COMMENT | And so the cost of that reduction in tariff to 19 percent from 25 for Malaysian goods to the US is revealed as over US$240 billion - more than RM1 trillion - that's paying way too much for very little, leaving us gaping at the gigantic sacrifice made. Investment, Trade and Industry Minister Tengku Zafrul Abdul Aziz enumerated the concessions: US$150 billion in purchases by multinational companies in Malaysia's semiconductor, aerospace, and data centre sectors over five years;