Minimum wage exemption to give MSMEs necessary breathing space - MEF
KUALA LUMPUR: The proposed exemption of micro, small and medium enterprises (MSMEs) with annual sales turnover below RM50 million from the minimum wage increase under Budget 2027 will give smaller businesses the necessary breathing space to strengthen their operations, improve productivity and prepare for future wage adjustments, according to the Malaysian Employers Federation (MEF).
The Malaysian Employers Federation (MEF) has welcomed the proposed exemption of micro, small, and medium enterprises (MSMEs) with annual sales turnover below RM50 million from the minimum wage increase under Budget 2027. According to MEF senior advisor Datuk Dr Syed Hussain Syed Husman, this exemption acknowledges the varying financial capacities of businesses and aims to provide smaller businesses with the necessary breathing space to strengthen their operations and prepare for future wage adjustments.
The exemption is expected to allow eligible businesses to adjust their business models, improve operational efficiency, and build their capacity to provide better wages sustainably. Additionally, the MEF highlighted the importance of financing facilities and guarantees for businesses, which have been increased to RM57 billion in 2027 from RM50 billion in 2026, to help MSMEs manage cash flow, invest in equipment, and expand operations.
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