ACCCIM says RM1,900 an ‘appropriate’ minimum wage, warns steeper hike could hurt MSMEs

KUALA LUMPUR, Sept 30 — The ACCCIM has advocated RM1,900 as the ideal monthly minimum wage, warning that a much larger hike could burden smaller businesses and inflate consumer prices. President Datuk Ng Yih Pyng stated that this 11.8% increase from the present RM1,700 wage would offer better incomes for workers while preserving the viability of micro, small and medium enterprises (MSMEs).

While the ACCCIM supports raising the minimum wage, it cautions against an excessively large rise that could pose a financial strain to businesses already operating on thin margins. Certain sectors, such as retail, restaurants, food services, agriculture and small-medium manufacturing, may absorb the added costs through higher prices.

The ACCCIM also warns that a one-size-fits-all minimum wage could force certain smaller businesses to cut their workforce or shut down, urging future increases to consider productivity, sector financial capacity and broader economic conditions. The chamber further proposes a tiered regional minimum wage system, arguing that a single nationwide rate might not suit regional variations in cost of living, labor-market conditions, and economic development.