GEORGE TOWN: Small businesses are exempted from raising the minimum wage to RM2,000 – but they may still have to do so or risk losing workers to larger companies.
The exemption for businesses with annual sales below RM50mil would not shield them from competition for workers, said Small and Medium Enterprises Association of Malaysia (Samenta) northern region chairman Calvin Kwan.
The exemption, he said, would give SMEs time to adjust but would not remove the pressure to pay higher wages.
He said jobseekers are likely to begin treating RM2,000 as the starting point when looking for work, making recruitment harder for smaller companies.
Existing workers might also demand higher pay or leave for companies offering better deals.
Kwan said this could be difficult for manufacturers, printers and packaging companies that relied on production workers, machine operators and technicians.
He wanted the government to help small businesses improve productivity so they could afford higher salaries.
He proposed more grants for automation, machinery and staff training, along with apprenticeship and skills certification programmes.
The government should also help SMEs cope with rising energy, transport and equipment costs.
Kwan said grants and financing should be easier to obtain, with simpler applications, faster approvals and clearer eligibility rules.
He said the one-percentage-point cut in corporate tax under Budget 2027 would help profitable businesses but offer little relief to those earning very little or struggling with cash flow.
Similarly, bigger allocations for loans and financing would mean little if smaller businesses could not qualify.
The government, he said, should judge the success of its measures by how many businesses received help and whether their productivity improved, rather than how much money was allocated.
The national minimum wage is set to rise from RM1,700 to RM2,000 in June next year.
