{
  "id": 14360901,
  "title": "BT Insights: How do businesses absorb the rising cost of labour, and does 2027 budget incentives help? [WATCH]",
  "url": "https://urgent.news/2026/10/14/bt-insights-how-do-businesses-absorb-the-rising-cost-of-labour-and",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-14T04:00:31.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/economy/2026/10/1555101/bt-insights-how-do-businesses-absorb-rising-cost-labour-and-does"
  },
  "original_language": "en",
  "account": "On October 13, the latest episode of BT Insights was broadcast on NST Online's YouTube channel, discussing the implications of the 2027 Budget for businesses. Starting in mid-2027, the minimum wage will increase to RM2,000 per month, bringing additional costs to many businesses. The Middle East crisis has led to soaring prices of raw materials over the past year, and businesses are grappling with how to absorb this rising cost of labor.\n\nWhile larger companies and corporations can invest in automation and AI to offset increased expenses, smaller businesses with thin margins may struggle. The RM2,000 minimum wage exemption applies to micro, small, and medium enterprises, but economists agree that even they will face greater competition for workers and talent due to the wage hike. In essence, those seeking talent will need to pay top dollar. This situation may contribute to runaway inflation, as highlighted in the episode.",
  "summary": "KUALA LUMPUR: The 2027 Budget came with good news for many entry-level workers, as starting the middle of next year, minimum wage will be RM2,000 a month.",
  "key_points": [
    "Minimum wage in Malaysia to rise to RM2,000/month in mid-2027",
    "Rising labor costs challenge businesses, especially SMEs",
    "Budget incentives may help, but inflation risk persists"
  ],
  "editors_take": "The mandatory wage hike forces a divide between large corporations capable of automating labor and smaller enterprises that must face rising competition for talent and potential inflationary pressures.",
  "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."
}