Statements from the Association of Malaysian Hauliers Regarding Increase in Minimum Wage

Created: 08.April 2022

The Malaysian Government has recently announced the new minimum wages to be raised to RM1,500.00.

Following is the response by the Association of Malaysian Hauliers:

"We take a strong view on the increase pertaining to the increase in the minimum wage. It is our concerted view on behalf of the members that the increase to the minimum wage from RM1,200.00 to RM1,500.00 is irrelevant to haulage industry.

We urge the Malaysian Government to review and reconsider the increase to the minimum wage due to the following reasons:

1. the increase represents an immediate increase of 25% on the basic salary.
2. the increase will surely have a spiral effect on the increase of operational costs as wages represents the bulk of our costs.
3. as the dominant portion of the wages consists our driver’s salaries and commissions per trip, the motivation for them to consistently work without disruption will decrease immediately.
4. It must be noted that it is usual circumstances for drivers to earnapproximately RM3,000-RM5,000 per month.
5. From our survey with members, most of them are facing imminent difficulties due to the current global economic condition.

It is our fervent hope that the relevant agencies could engage with us as to allow us to explain further pertaining to this issue. We cannot but over-emphasize that majority of our members are Malaysian owned. We therefore urgently asks the assistance of the Malaysian Government to include us in the exempted category pertaining to the hike of the minimum wage scheme.

As stated, we reiterate that the Association is ready to explore and engage with the relevant parties to achieve an amicable solution.

Mr. Soo Chee Yeong
Association of Malaysian Hauliers
8th April 2022"