PETALING JAYA: Exempting some micro, small and medium enterprises (MSMEs) from the proposed RM2,000 minimum wage could see them lose workers to larger employers offering higher pay, says Datuk Seri Hamzah Zainudin.
The Opposition Leader said the differing wage requirements could have a cascading effect on smaller businesses as workers sought better-paying jobs elsewhere.
“What about those in the same company who have been working for longer periods? They would surely want higher wages as well.
“This could lead to higher costs for these businesses.
“I do not doubt that this is good in ensuring more people receive decent wages, but MSMEs should also be helped,” he said when debating Budget 2027 in the Dewan Rakyat.
Hamzah said the government should provide incentives to MSMEs alongside the minimum wage increase.
“This would minimise any shocks to their businesses and ensure their stability,” he said.
When tabling Budget 2027, Prime Minister Datuk Seri Anwar Ibrahim announced that the minimum wage would be raised from RM1,700 to RM2,000 from June 2027.
He said MSMEs with annual sales below RM50mil would be exempted from the new rate to give them more time to adjust their business models.
The new minimum wage is expected to cover more than four million workers.
Anwar, who is also Finance Minister, also announced a minimum monthly wage of RM2,500 for semi-skilled workers and graduates as part of reforms to the workers’ income framework.
