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Malaysia labor and welfare policy reviews

Updated 1 time since CLSTR started tracking revisions of this situation.

What changed

2026-09-30 10:44 UTC → 2026-10-01 23:56 UTC · added removed

As part of preparations for Budget 2027, the Malaysian government is reviewing various labor and welfare policies. The Ministry of Finance is examining social protection, insurance costs, and service fee rates for e-hailing and p-hailing gig workers. In a recent development, platform providers including Foodpanda, Grab, and Halo have contributed over RM1.5 million to expand coverage under the Social Security Organisation (PERKESO) scheme, benefiting approximately 500 workers. Simultaneously, Prime Minister Anwar Ibrahim has ordered a study into potential adjustments to Regarding the national minimum wage, which is currently RM1,700. While an announcement may occur during the October 9 Budget 2027 presentation, RM1,700, the government is considering exemptions for Micro, Small, Malaysian Cabinet has agreed to exempt micro, small, and Medium Enterprises medium enterprises (MSMEs) from upcoming increases to mitigate operational protect them from rising operating costs. Proposed support includes Entrepreneur Development and Cooperatives Minister Steven Sim Chee Keong stated that the government intends to utilize alternative methods, such as wage subsidies under a the Progressive Wage Policy. Stakeholders Policy, to ensure wage growth aligns with productivity. Stakeholder reactions have suggested various approaches, such as excluding been mixed. The Malaysian Employers Federation (MEF) supported the MSME reprieve to help manage costs and protect employment. Conversely, Samenta Pusat Chairman Datuk William Ng warned that a proposed increase to RM3,100 would be “extremely difficult” for many small businesses to sustain, potentially causing hiring freezes or closures. Additionally, former Finance Minister Lim Guan Eng has urged the government to exclude foreign workers from wage hikes or implementing a gradual, phased increase and called for the abolition of the mandatory 2% Employees’ Provident Fund (EPF) contribution for foreign workers to avoid overwhelming businesses. reduce the financial burden on local employers.

Versions

  1. 2026-10-01 23:56 UTC Malaysia labor and welfare policy reviews
  2. 2026-09-30 10:44 UTC Malaysia labor and welfare policy reviews

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