Minimum-wage exemption apt for MSMEs to ease cost pressure: Samenta
KUALA LUMPUR: Exempting micro, small and medium enterprises (MSMEs) from the RM2,000 minimum wage requirement is necessary to ease cost pressures and preserve their capacity to invest, automate and expand.
Ministry of Finance President Datuk William Ng suggests exempting micro, small and medium enterprises (MSMEs) from the upcoming RM2,000 minimum wage requirement to alleviate cost pressures and enable investment, automation and expansion. Despite higher sales, MSMEs have faced mounting cost pressures in recent years, squeezing profit margins, according to Ng.
The association supports the government's decision to exempt MSMEs but is concerned about the potential loss of funds needed for productivity improvements and expansion, as well as compliance with new environmental, social and governance (ESG) requirements. Ng cited an example of a small food stall operator in Kota Bharu where an extra RM300 in monthly wages could determine if a worker would retain their job.
The exemption could create a two-tier minimum wage system, he acknowledged, but equalization remains a goal. MSMEs employ about half of the country's workforce and generally have lower education and skill levels than those employed by government-linked companies and multinational corporations.
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