Malaysia sets minimum wage for private sector

Malaysia has unveiled a minimum wage scheme for private sector workers in a move that would benefit more than 3 million low-income workers.

However, some employers and small and medium-size businesses are worried it will hurt their competitiveness.

Prime Minister Najib Razak says minimum monthly pay will be set at 900 ringgit ($295) for private sector workers in peninsula Malaysia and 800 ringgit ($260) for those in the poorer eastern states of Sabah and Sarawak.

He says the domestic services sector including maids and gardeners will be excluded.

Najib said Monday the scheme would lift low-income workers out of poverty and help them cope with a rising cost of living. The announcement comes ahead of general elections widely expected this year.