Don’t exploit RM2,000 minimum wage, Fomca urges bosses

The Federation of Malaysian Consumers Associations has urged businesses not to exploit the newly announced minimum wage increase of RM2,000 as a reason to raise prices unreasonably. The federation's chief executive, T Saravanan, emphasized that the government must monitor prices to ensure the wage increase's benefits are not offset by rising living costs.

While supporting the government's decision to raise the minimum wage from RM1,700 to RM2,000 per month, starting next June, Saravanan called for further details on which workers and employers would be affected by the new rate, as well as exemption criteria for small businesses. The government announced the wage increase in the 2027 budget tabled by Prime Minister Anwar Ibrahim.

Over four million workers are expected to benefit from the increase. However, small businesses with annual sales of less than RM50 million will be exempted from the new rate to allow them time to adjust their business models. The Consumers Association of Penang welcomed the increase but maintained that the amount remains insufficient to meet workers' living expenses.

CAP's honorary secretary, S Mageswari, stressed the need for an increase in the minimum wage to ensure social and economic justice, and called for measures to control inflation and monitor prices to prevent workers from being burdened by rising living costs. She also urged the government to provide additional support, such as transitional assistance, to help small business employers adjust to the new wage.