RM2,000 minimum wage across the board, SMEs to be exempted?
KUALA LUMPUR: The government is understood to be preparing to raise the minimum wage to RM2,000 a month across sectors, covering workers across various employment categories.
The Malaysian government is reportedly considering raising the minimum wage to RM2,000 per month across all sectors, including fresh diploma and degree graduates. This proposal is expected to be included in the 2027 Budget and would exempt micro, small, and medium enterprises (MSMEs) for now. Critics argue that higher wages could lead to salary compression, but proponents believe this could encourage employers to focus on rewarding skills, productivity, and higher-value industries.
Malaysia aims to become a high-income nation and has set a target of RM3,000 minimum wage by 2030, as outlined in the 13th Malaysia Plan. The current RM1,700 minimum wage, enforced since August 2025, is under review, with the Human Resources Minister acknowledging the need to balance workers' cost-of-living pressures with employers' financial capabilities.
The Malaysian Trades Union Congress has called for a minimum wage of RM3,100 per month, while industry insiders suggest a more gradual increase to allow businesses to adjust. Higher wages could help Malaysian workers keep pace with rising living costs, but policymakers must ensure that wage growth does not hinder business competitiveness, particularly in price-sensitive industries.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
