Some companies unhappy with proposed minimum wage hike, says Ramanan

PUTRAJAYA: Human Resources Minister Datuk Seri R. Ramanan revealed that some companies have raised concerns over the government's proposed minimum wage increase, citing worries about higher operating costs. However, Ramanan clarified that the increase had been thoroughly considered following extensive dialogue with employers and industry representatives. At a press conference, Ramanan stated, "Of course, there are some companies which were not so happy. They did share their views with us."

The National Wages Consultative Council (MPGN), chaired by Tan Sri Zainal Rahim Seman, engaged in numerous discussions with industry players to grasp their concerns. The council also analyzed data from various ministries and sectors before finalizing its recommendations, ensuring the wage hike could be sustained by the economy. Ramanan emphasized that setting an appropriate wage level requires considering factors like employers' ability to pay, economic conditions, and potential inflation impact.

As part of the 2027 Budget, the government announced that the national minimum wage would rise from RM1,700 to RM2,000 per month starting June of the following year, benefiting over four million workers. However, micro, small, and medium enterprises with annual sales under RM50 million will be exempt from the new rate to provide them with time to adjust. The government also proposed a RM2,500 minimum starting salary framework for graduates and semi-skilled workers.