{
  "id": 12631308,
  "title": "Kenaikan gaji minimum berisiko meningkatkan kos operasi, kata persatuan kontraktor",
  "url": "https://urgent.news/2026/10/07/kenaikan-gaji-minimum-berisiko-meningkatkan-kos-operasi-kata",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-07T12:00:00.000Z",
  "source": {
    "name": "Free Malaysia Today",
    "slug": "free-malaysia-today",
    "url": "https://www.freemalaysiatoday.com/category/bahasa/tempatan/2026/10/07/kenaikan-gaji-minimum-berisiko-meningkatkan-kos-operasi-kata-persatuan-kontraktor"
  },
  "original_language": "en",
  "account": "The Malaysian Contractors Association (MBAM) has warned that a rise in minimum wages could increase construction sector costs, potentially leading to higher property values and project expenses, according to MBAM President Kenneth Liew Kiam Woon. Labor costs constitute one of the largest components in the construction industry, and any increase in minimum wages could affect construction contractors' operating costs, said Liew.\n\nHigh dependence on foreign workers in the construction sector leads to additional costs beyond basic wages, including overtime rates and related payments, he explained. Many contractors are bound by fixed-price contracts signed before this announcement and cannot easily pass these costs onto buyers. If this burden is not shared, it will ultimately appear in project costs and property values, Liew told FMT.\n\nTo alleviate pressure, Liew urged the government to implement incremental increases in minimum wages through consultation with the industry, alongside providing adjustment mechanisms for existing public and private contracts. Meanwhile, President of the Malaysian Contractors Union Class F Malaysia, Tukiman Radion, noted that most small contractors are not directly affected by the revised wage structure as a significant portion of their workforce consists of freelancers or family members. However, a minimum wage increase puts pressure on some contractors with permanent staff for maintenance and cleaning duties, he said.\n\nProjects managed by small contractors are mostly of small scale and still based on old pricing. Permanent workers increasingly demand higher wages when minimum wages are raised, while contractor payments from clients remain the same, according to Radion. On August 18, Human Resources Minister R Ramanan said the government is reviewing the RM1,700 minimum wage, with a decision on whether to keep or increase it to be made by the National Wage and Salary Council. Details of whether the wage will be increased are expected to be announced during the 2027 Budget speech on October 9. However, Malaysian Development and Cooperatives Minister Steven Sim Chee Keong confirmed that micro, small, and medium enterprises (PMKS) are exempt from the increase for now, in order to avoid increased operating costs.",
  "summary": "MBAM gesa kenaikan gaji minimum dilaksanakan secara berfasa menerusi konsultasi industri, berserta mekanisme penyelarasan harga bagi kontrak sedia ada.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Free Malaysia Today",
        "title": "Kenaikan gaji minimum berisiko meningkatkan kos operasi, kata persatuan kontraktor",
        "url": "https://urgent.news/2026/10/07/kenaikan-gaji-minimum-berisiko-meningkatkan-kos-operasi-kata-12632032",
        "published": "2026-10-07T12:00:00.000Z"
      }
    ]
  },
  "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."
}