Since the beginning of the minimum wage’s history, the effectiveness of the minimum wage has always been a never ending debate. The initial purpose of minimum wage to help the poor worker from being oppressed with a very low wage is being argued by the potential of the poor worker will not be able to receive any job at all due to the minimum wage policy.
This debate on whether minimum wage will have a significant effect on unemployment has been the main study on the effect of minimum wage since it is first implemented. Malaysia, a developing country in the south-east Asia region is currently on its way to implement minimum wage regulation through the Economic Transformation Programme (ETP), a programme which was launched on 21st September 2001, with an aim to transform Malaysia to become a high-income country by 2020.
In order to achieve this, Malaysia, which has a per capita income of USD 6,700 on the day the programme was proposed will have to achieve the Worlds Bank’s minimum criteria for a high-income country, a per capita income of USD 15,000 – more than double of the Malaysia’s initial per capita income.
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