THE six-month deferment period for the implementation of the increased minimum wage from RM1,500 to RM1,700 gives employers some breathing room before it is rolled out, stakeholders say.
Malaysian Employers Federation president Datuk Syed Hussain Syed Husman welcomed the announcement, taking into account the challenges faced by micro, small and medium enterprises (MSMEs).
“The new minimum wage is only the starting point as most employees get more than this.
“If employers can afford to pay higher salaries, they should. It is ethical and good practice to remunerate employees based on their performance,” he said.
It was announced in Budget 2025 yesterday that from Feb 1, 2025, the minimum monthly salary will be raised from RM1,500 to RM1,700.
A six-month deferment will be given to employers with fewer than five workers.
Kuala Lumpur and Selangor Indian Chamber of Commerce and Industry president Nivas Ragavan said this is a positive step towards ensuring better living standards for the working class.
It aligns with the effort to address the rising cost of living, particularly in urban areas, he added.
He said the six-month deferment period is also necessary for small enterprises to adjust to the increased financial pressure.
“While we support fair wages for employees, it is essential to ensure that businesses, particularly the MSMEs, are given adequate support mechanisms to cope with these changes.
“This includes potential government assistance or incentives to offset the impact of higher operational costs.
“Ultimately, a balanced approach will benefit both the workforce and the sustainability of businesses,” he added.
Malaysian Trade Union Congress president Mohd Effendy Abdul Ghani believes the rise in minimum wage would drive economic growth by enhancing purchasing power as the standard of living improved.
“This will benefit the national economy as a whole because higher domestic spending will stimulate local businesses and contribute to more inclusive economic growth,” he said.
Mohd Effendy said the measure, however, must be implemented with strict enforcement.
“Any delay in implementation will have a direct impact on workers who are facing the challenges brought by rising living costs,” he said.
