PETALING JAYA (Oct 9): The Malaysian Employers Federation welcomes the exemption granted to micro, small and medium enterprises from implementing the increased minimum wage, but said clear eligibility criteria and guidelines are needed.
Prime Minister Datuk Seri Anwar Ibrahim announced in his Budget 2027 speech in Parliament on Friday that the minimum wage would be increased from RM1,700 to RM2,000 effective June 2027 but that MSMEs with annual sales below RM50 million would be exempt.
MEF welcomed the wage increase and praised the exemption for MSMSEs, citing the differing financial capabilities of smaller businesses, especially those with limited resources.
But it said clear guidelines are needed to determine how the annual sales threshold will be assessed.
MEF also proposed that the government strengthen measures to help businesses improve productivity so they can afford to pay higher wages in the long term.
“Sustainable wage growth cannot depend on wage increases alone. It must be supported by higher productivity, stronger business performance and a more competitive economy,” said MEF senior advisor for government, media and international engagement Datuk Syed Hussain Syed Husman.