KUALA LUMPUR (Oct 13): Nearly 49% of Malaysia’s entire workforce is exempted from the minimum wage hike announced earlier by Prime Minister Datuk Seri Anwar Ibrahim.
“This measure is to ensure that employers can reorganise their finances and business operations without having to take drastic measures, including retrenchments,” said Economy Minister Akmal Nasrullah Mohd Nasir in a written reply.
He was responding to Sri Gading MP Aminolhuda Hassan who asked about measures the government would introduce to prevent the higher minimum wage from resulting in job losses, rising consumer prices and additional operating costs for small businesses.
The government announced last week that the monthly minimum wage would increase by RM300 to RM2,000 next year. The increase is expected to benefit more than four million workers.
Micro, small and medium enterprises, which account for 8.09 million workers, will be exempted from implementing the RM2,000 minimum wage from June 2027 if their annual sales are below RM50 million.
The ministry said enforcement of the revised minimum wage would be undertaken by the labour departments in Peninsular Malaysia, Sabah and Sarawak under the National Wages Consultative Council Act 2011.
Employees may lodge complaints against employers who fail to comply with the new rate, with offenders potentially facing fines or imprisonment under Section 43 of the Act.
Workers who lose their jobs as a result of company restructuring following the wage increase and covered under the Employment Insurance System would be eligible for assistance, including a job search allowance for up to six months, Akmal Nasrullah said.
On concerns that higher wages could translate into increased consumer prices, he said inflation has remained manageable despite previous minimum wage adjustments.
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