Minimum Wages on Trial for Study

MINIMUM WAGES IN MALAYSIA – THE ONGOING BATTLE BETWEEN THE GOVERNMENT OF MALAYSIA AND THE TRADE UNION.

INTRODUCTION

The Peninsular Malaysia and Southeast Asia has been the center for trade for centuries. “Various items such as porcelain and spice were actively traded even before Malacca and Singapore rose to prominence. In the 17th century, large deposits of tin were found in several Malay states. Later as the British started to take over as administrators of Malaya, rubber and palm oil trees were introduced for commercial purposes. Over time, Malaya became the world’s largest producer of tin, rubber, and palm oil.[1] These three commodities along with other raw materials firmly set Malaysia’s economic tempo well into the mid twentieth century.

During the 1970s, Malaysia has committed itself to transition from reliance on mining and agriculture to manufacturing. The rate of poverty in Malaysia also fell dramatically over the years. However, its precipitous drop has been questioned by critics who suggest that the poverty line has been drawn at an unreasonably low level.[2]

The development and enforcement of labour laws in Malaysia began to take shape upon the arrival of migrant labourers from China and India during British colonial rules in the 19th century.

The labour laws established pertained mainly to matters concerning immigration entry of forced labour, housing and health.

In 1912, the first labour office was established in the Straits Settlement and Federated Malay States.

The basic principles that govern the relationship between the employer and the employees in Malaysia were derived from three main sources:

▪ English Common Law

▪ Malaysia’s Written Statutes

▪ Decisions of the Civil and Industrial Courts.

MAJOR LAWS INFLUENCING EMPLOYMENT PRACTICES

This Act sets the minimum labor standards for workers and seeks to protect them from exploitation.

Purposes: Prevent exploitation of child labor.

Practices that can avoid...