{
  "id": 2681560,
  "title": "Note our needs when fixing minimum wage, businesses tell govt",
  "url": "https://urgent.news/2026/08/23/note-our-needs-when-fixing-minimum-wage-businesses-tell-govt",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-23T00:00:00.000Z",
  "source": {
    "name": "Free Malaysia Today",
    "slug": "free-malaysia-today",
    "url": "https://www.freemalaysiatoday.com/category/nation/2026/08/23/note-our-needs-when-fixing-minimum-wage-businesses-tell-govt"
  },
  "original_language": "en",
  "account": "Small and medium enterprises (SMEs) have raised concerns with the Malaysian government regarding the potential impact of raising the minimum wage, particularly for businesses in smaller towns and rural areas. The Small and Medium Enterprises Association of Malaysia (Samenta) and the Malaysian Employers Federation (MEF) have both urged the government to consider the unique challenges faced by SMEs when implementing a wage increase.\n\nSamenta president William Ng argued that an across-the-board wage increase would put significant strain on the profit margins of SMEs, especially micro-enterprises. He explained that larger companies, multinational corporations, and government-linked companies, as well as SMEs located in urban centers, would be more capable of absorbing the increased operational costs. However, in smaller and rural towns, where the cost of living and business volumes differ greatly from those in the Klang Valley, SMEs would struggle to cope with the additional expenses.\n\nNg suggested that the government could mitigate the impact of a minimum wage hike by providing SMEs with assistance in reducing other operational costs, such as lowering regulatory fees or offering rebates on utility tariffs. This would help businesses maintain their competitiveness and prevent a potential surge in inflation resulting from the wage increase.\n\nOn the other hand, MEF president Syed Hussain Syed Husman emphasized the importance of a sustainable wage system that promotes productivity. He called for a wage structure that not only improves workers' incomes but also benefits employers by allowing them to invest in higher-value skills for their employees. By fostering productivity growth, the government, employers, and employees can work together towards a more stable and sustainable wage system that ultimately benefits both workers and businesses.",
  "summary": "The Small and Medium Enterprises Association of Malaysia warns that an across-the-board minimum wage increase could significantly compress SMEs’ profit margins.",
  "key_points": [
    "SMEs warn of minimum wage hike strain on profit margins, especially micro-enterprises",
    "Government urged to provide SMEs with cost reduction assistance",
    "MEF emphasizes sustainable wage system promoting productivity"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Free Malaysia Today",
        "title": "Note our needs when fixing minimum wage, businesses tell govt",
        "url": "https://urgent.news/2026/08/23/note-our-needs-when-fixing-minimum-wage-businesses-tell-govt-2684850",
        "published": "2026-08-23T00:00:00.000Z"
      }
    ]
  },
  "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."
}