The minimum wage rate is slated to increase from RM1,200 (US$285) to RM1,500 (US$357) "soon", rather than the end of the year, according to Human Resource Minister Datuk Seri M. Saravanan.

"The government has in principle agreed that the minimum wage in the country should be increased to RM1,500. However, we're in the midst of finalising the matter including to address current challenges before it can be implemented," he said.

"We don't want companies to take advantage [of the increased minimum wage announcement] to reduce the number of employees. This will defeat its purpose while we are aiming to further reduce the country's unemployment rate from 4.2% to 4%," he added, reports New Straits Times.

The minimum wage rate across 57 cities and towns in Malaysia is RM1,200, while the minimum wage for areas elsewhere is RM1,100 (US$261).

Give a comprehensive and detail understanding of the minimum wage policy in Malaysia. Analysis and discuss further the impacts of such policy changes on the labour markets.