The Impact of Minimum Wage on Employment in Malaysia

On 1 May 2012 minimum wage regulation was introduced by Malaysia government and was gazette on 16 July 2012. The rate at RM900 for Peninsular Malaysia and East Malaysia (Sabah, Sarawak and Labuan) at RM800. In 2019, new rate was effective for nationwide at RM1100. The ambiguous finding from the past research drive this research to be conduct. Specifically, this study test whether, an implementation of minimum wage may benefit an employment in Malaysia. An Ordinary Least Square estimation method was employed. The result suggests that minimum wage significantly influence employment in Malaysia.