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Malaysia exempts MSMEs from upcoming minimum wage increases
The Malaysian Cabinet has agreed to exempt micro, small, and medium enterprises (MSMEs) from upcoming minimum wage increases to protect them from rising operating costs and economic challenges. Entrepreneur Development and Cooperatives Minister Steven Sim Chee Keong stated that while the government intends to raise wages, it will utilize alternative methods such as wage subsidies under the Progressive Wage Policy to ensure wage growth aligns with productivity.
Industry stakeholders have expressed varying views on the matter. The Malaysian Employers Federation (MEF) supported the reprieve for MSMEs, noting it helps businesses manage costs and protect employment. However, Samenta Pusat Chairman Datuk William Ng warned that a proposed jump to RM3,100 would be extremely difficult for many small businesses to sustain, potentially leading to hiring freezes or closures.
Additionally, former Finance Minister Lim Guan Eng has urged the government to exclude foreign workers from any minimum wage hikes to prioritize local workers and protect Malaysian businesses. He also called for the immediate abolition of the mandatory 2% Employees’ Provident Fund (EPF) contribution for foreign workers, arguing it places an unnecessary financial burden on local employers.
Entities
Anwar Ibrahim · Cabinet of Malaysia · Lim Guan Eng · Malaysia · Malaysian Employers Federation · Ramanan Ramakrishnan · Samenta Pusat · Steven Sim Chee Keong
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] Lim Guan Eng urged the government to exclude foreign workers from any future minimum wage increases. www.malay.news · worldofbuzz.com
- [● 2 SOURCES] Lim Guan Eng called for the immediate abolition of the mandatory 2% Employees’ Provident Fund (EPF) contribution for foreign workers. www.malay.news · worldofbuzz.com
- [● 2 SOURCES] The Cabinet agreed to exempt MSMEs from further minimum wage increases for now to protect them from operating cost pressures. berita.rtm.gov.my · www.freemalaysiatoday.com
- [○ 1 SOURCE] Samenta Pusat Chairman Datuk William Ng stated that a proposed increase to RM3,100 would be difficult for MSMEs to sustain. www.utusan.com.my
- [● 2 SOURCES] The government will use wage subsidies under the Progressive Wage Policy to support MSME worker wages. berita.rtm.gov.my · www.freemalaysiatoday.com
- [● 2 SOURCES] The current national minimum wage in Malaysia is set at RM1,700. thesun.my · www.freemalaysiatoday.com
- [○ 1 SOURCE] The Malaysian Employers Federation (MEF) backed the decision to exempt MSMEs from further minimum wage increases. thesun.my