{
  "id": 11055583,
  "title": "'Excessive minimum wage increase could lead to cost shock for businesses' - ACCCIM",
  "url": "https://urgent.news/2026/09/30/excessive-minimum-wage-increase-could-lead-to-cost-shock-for",
  "topic": "world",
  "section": "World",
  "published": "2026-09-30T23:00:48.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/news/nation/2026/10/1545060/excessive-minimum-wage-increase-could-lead-cost-shock-businesses-acccim"
  },
  "original_language": "en",
  "account": "KUALA LUMPUR: The Associated Chinese Chambers of Commerce and Industry of Malaysia (Acccim) has issued a warning about the potential for an excessively high minimum wage to create a financial strain for businesses, especially those with slim profit margins. Acccim president Datuk Ng Yih Pyng acknowledged that businesses have already faced multiple cost hikes in recent years, but cautioned against an overly large wage increase, as it could affect small and medium-sized enterprises (MSMEs). He emphasized that the minimum wage should find a balance between boosting workers' incomes and ensuring MSMEs' survival. Ng pointed out that businesses with thin profit margins might pass increased labor costs onto consumers, leading to higher retail prices and further fueling inflation. Sectors with a high concentration of low-wage and entry-level workers, such as retail, restaurants, food services, agriculture, and small and medium-sized manufacturing, would be especially vulnerable to higher operational costs. Ng also warned of a \"ripple effect,\" where workers earning slightly above the minimum wage could demand higher salaries, pushing overall payroll expenses up as businesses adjusted wages across various levels to maintain existing wage gaps. Additionally, higher minimum wages would directly increase employers' contributions to the Employees Provident Fund, Social Security Organisation, and Employment Insurance System. Acccim stressed that a one-size-fits-all approach to minimum wage adjustments could put smaller businesses at risk of cutting jobs or shutting down. Instead, they advocated for a tiered regional system based on local cost of living, labor market conditions, and economic development levels. Acccim urged the government to consider a tiered approach, tailoring minimum wages to regional circumstances and preventing disproportionate pressure on businesses in economically weaker regions while ensuring workers in high-cost areas can still meet basic living expenses.",
  "summary": "KUALA LUMPUR: The Associated Chinese Chambers of Commerce and Industry of Malaysia (Acccim) has cautioned that an excessive minimum wage adjustment could create a cost shock for businesses, particularly those operating on thin profit margins.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}