PETALING JAYA: A higher minimum wage could boost the purchasing power of lower-income workers and domestic consumption, but businesses are divided over whether another increase is sustainable.
Mydin managing director Datuk Ameer Ali Mydin said raising the minimum wage would help lower-income workers cope with rising living costs while giving them more spending power.
“The current minimum wage is not enough,” he said, adding that stronger purchasing power among the B40 group could also help drive economic growth.
“The more they earn, the more they spend. The more they spend, the more the country can grow,” he said.
Ameer Ali said he supported an increase but wanted it introduced gradually, as the government should also give employers sufficient notice before implementing any increase.
Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) president Datuk Ng Yih Pyng said the group was cautious about another blanket increase as businesses were already facing substantially higher operating costs.
He said ACCCIM had supported the RM1,700 minimum wage when it was introduced in 2025, but businesses were now dealing with higher wages, EPF contributions for non-citizen workers, foreign worker levies, utilities, taxes and other expenses.
Ng said any future adjustment should be linked to productivity and take into account inflation, cost of living, regional economic conditions and businesses’ ability to absorb higher costs.
If the government decided to raise the minimum wage, Ng said the adjustment should be accompanied by targeted support, particularly for SMEs and labour-intensive sectors.
“Our objective is not simply to help businesses absorb higher wages, but to help them become more productive and sustainable, so that better wages can be supported by stronger businesses,” he said.
Meanwhile, Federation of Malaysian Manufacturers (FMM) president Jacob Lee Chor Kok said the RM1,700 rate had only been fully implemented across all employers since August 2025, with businesses, particularly SMEs and labour-intensive industries, still adjusting to higher wage costs.
“Any further adjustment should be approached cautiously and should take into account not only inflation and the cost of living, but also labour productivity, business conditions, employers’ financial capacity and Malaysia’s overall competitiveness,” he said.
He said the government should also focus on creating conditions that enabled companies to pay higher wages sustainably through greater productivity and value creation.
At this stage, FMM did not believe it was appropriate to prescribe a new minimum wage before the National Wages Consultative Council completed its assessment of the relevant economic and business indicators, he said.
Small and Medium Enterprises Association (Samenta) president Datuk William Ng said the group did not support an increase at this juncture.
He said the RM1,700 minimum wage only became universally binding across all micro, small and medium enterprises in August 2025, with most SMEs still adjusting to the 13.3% increase.
At the same time, SMEs were facing higher compliance costs from e-invoicing, supply chain volatility and fluctuating raw material prices, he said.
“SMEs currently have virtually zero buffer to absorb another mandatory wage hike without significant disruptions,” he said.
He called for wage growth to be driven by skills development and productivity instead of repeated mandatory increases.
