Small firms will suffer if forced to reveal salaries, say business groups

Business groups argue that making salary offers compulsory could harm small firms and attract larger employers. The Small and Medium Enterprises Association and the Malaysian Employers Federation suggest smaller firms should be able to disclose salary figures voluntarily rather than being forced to do so. William Ng, president of Samenta, notes that small businesses often have flexible pay structures based on individual skills and business impact, making blanket rules for salary disclosure impractical.

If mandatory, smaller companies could be shunned by jobseekers before they have a chance to offer non-monetary benefits, giving larger companies an advantage to poach talent. Syed Hussain Syed Husman, president of the Malaysian Employers Federation, supports wage transparency but warns that a mandatory regime would burden micro, small, and medium enterprises with compliance costs, as many lack the resources of larger firms.

He proposes a phased, voluntary rollout starting with larger employers and suggests exemptions for smaller businesses. Syed Hussain also warns that without safeguards, disclosure could lead to aggressive headhunting, wage inflation, and workplace tension due to salary comparisons. Economy Minister Akmal Nasir stated that his ministry is exploring ways to make salary offers more transparent and equitable, aiming to raise the median wage and ensure real wage gains for workers.