SME Corp: Minimum wage exemption in 2027 Budget to help MSMEs adjust recruitment, salaries
KUALA LUMPUR: The RM2,000 minimum wage exemption for micro, small and medium enterprises (MSMEs) with annual sales revenue below RM50 million in the 2027 Budget, effective June next year, would help businesses adjust their workforce recruitment and salary structures, said SME Corporation Malaysia.
The Malaysian government announced in the 2027 Budget that micro, small and medium enterprises (MSMEs) earning less than RM50 million annually will be exempted from a minimum wage increase to RM2,000 per month, taking effect in June 2027. SME Corporation Malaysia's CEO Rizal Nainy explained that this exemption would allow businesses to adapt their workforce recruitment and salary structures, potentially improving productivity and reducing labor costs.
Nainy stressed the importance of targeted interventions in digitalization and automation, which could complement a higher minimum wage and maximize the value of skilled labor. Speaking on Bernama TV's The Nation programme, Nainy highlighted that the RM57 billion allocated for MSME financing facilities in the 2027 Budget would help businesses expand and contribute more to the country's GDP.
The prime minister also announced a corporate income tax reduction by one percentage point for eligible MSMEs. Nainy emphasized the importance of MSMEs obtaining accurate information from reliable sources to maximize the benefits of the budget and scale up their businesses in line with the 13th Malaysia Plan's goal of transforming micro enterprises into small businesses and small businesses into medium-sized enterprises.
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