Revitalising workforce creates conducive business environment

The signing of Malaysia's first minimum wage law, affecting approximately 3.2 million private sector workers, signifies great progress in modernising labour legislation, reflecting the government's commitment to human capital development.

Aiming to boost productivity and competitiveness in the workplace, the government set the minimum wage rate at 900 ringgit (HK$2,213.70) per month for peninsular Malaysia and 800 ringgit for Sarawak, Sabah and Labuan Federal Territory.

Extending the retirement age and future amendments to the Industrial Relations Act are also some upcoming initiatives to transform the workplace.

Streamlining labour legislation plays a crucial part in the government's aim to transform Malaysia into a high-income nation and ensure its global competitiveness.

The modernisation of labour laws also helps the government to reduce labour management costs and encourage potential foreign investors to conduct business in Malaysia.

Workforce transformation goes hand in hand with workplace transformation. Collaborating with the private sector, the Malaysian government is providing incentives to employees to upskill in international certification and training programmes to meet the skill sets that multinational companies (MNCs) require. It also serves as the bridge between academia and industry, helping to hone industry-ready graduates. The government's goal is to showcase the capabilities of the local talent pool and transform the country into a talent hub by 2020.