Fairer wage deals come at a price

This paper aims to explore human resource challenges faced by hotel managers in Langkawi, Malaysia, due to the implementation of the minimum wage order (MWO).

Data from 19 hotels on Langkawi Island were collected. Hotel managers were interviewed to find out what challenges were created by the implementation of an MWO.

Challenges include low employee productivity levels, employee having a salary below the minimum wage rate and problems connected with Malaysia’s service charge.

The study gives a managers’ perspective on these challenges and explains why the unemployment rate for local workers might increase after an MWO has been implemented.