SME association welcomes minimum wage increment exemption
KUALA LUMPUR: The government’s decision to exempt small and medium enterprises (SMEs) from further minimum wage increases will protect 1.3 million SMEs nationwide, said the Small and Medium Enterprises Association of Malaysia (Samenta).
The Malaysian government has decided to exempt small and medium enterprises (SMEs) from additional minimum wage increases, a move welcomed by the Small and Medium Enterprises Association of Malaysia (Samenta). Its president, Datuk William Ng, praised the decision, saying it would help SMEs manage rising costs, thin profit margins, and global economic uncertainties.
Ng emphasized that sustainable wage growth should be based on value creation and productivity gains, endorsing the Progressive Wage Policy as the right path forward. He urged the government to collaborate with industry associations to facilitate SME-focused training programs aimed at enhancing productivity. Samenta also stressed that wage policy should be considered alongside other structural costs SMEs face, such as compliance and regulatory expenses, logistics, utility bills, and access to low-interest working capital financing.
While Samenta welcomed the exemption, Ng advised larger SMEs to increase wages to retain talent and foster a motivated workforce. The association remains dedicated to collaborating with the Entrepreneur Development and Cooperatives Ministry, Human Resources Ministry, and other relevant bodies to assist SMEs in transitioning to higher-productivity, higher-value businesses that can offer competitive wages.
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