KUALA LUMPUR: Small and medium enterprises (SMEs) will be exempted from the minimum wage increase for now as some segments remain under pressure, says Finance Minister II Datuk Seri Amir Hamzah Azizan.
He said the government would also introduce a minimum wage for semi-skilled workers.
"This will help push forward labour reform, which is important for the country," he told a press conference after Budget 2027 was tabled in the Dewan Rakyat on Friday (Oct 9).
Amir Hamzah said the government had responded to feedback from businesses with cash flow support and tax cuts for SMEs.
"SMEs are an important backbone of the country. They make up 94% of companies in Malaysia, provide jobs for 48% of Malaysians and contribute about 40% of GDP.
"Sometimes pressure comes, and what matters is maintaining cash flow to help them," he said.
He said year-to-date growth stood at 5.7%, with full-year growth forecast at between 4.8% and 5.3%.
Unemployment had fallen to around 3%, with inflation at 1.9%, he added.
"But these figures alone are not enough. Our effort in Budget 2027 is to ensure the spillover from the country's success as a trading nation reaches the people," he said.
Prime Minister Datuk Seri Anwar Ibrahim, when tabling Budget 2027, said the minimum wage will be raised from RM1,700 to RM2,000 a month from June 2027, which will benefit over four million workers.
Small and medium enterprises with annual sales below RM50mil would be exempted from the new minimum wage to allow them time to adjust their business models.
