{
  "id": 2973164,
  "title": "Employers raise concerns over proposed RM3,100 minimum wage",
  "url": "https://urgent.news/2026/08/24/employers-raise-concerns-over-proposed-rm3-100-minimum-wage",
  "topic": "business",
  "section": "Business",
  "published": "2026-08-24T07:28:59.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/news/nation/2026/08/1517782/employers-raise-concerns-over-proposed-rm3100-minimum-wage"
  },
  "original_language": "en",
  "account": "Employer groups have expressed apprehension over a proposed RM3,100 statutory minimum wage, fearing it could burden micro, small, and medium enterprises (MSMEs) and result in job losses. This reaction follows a Malaysian Trades Union Congress (MTUC) proposal to use RM3,100 as a reference for the new minimum wage to counter the increasing cost of living. Datuk Dr Syed Hussain Syed Husman, president of the Malaysian Employers Federation (MEF), clarified that while supporting workers' decent pay is commendable, applying the RM3,100 benchmark across the private sector would have serious repercussions. He explained that a living wage, aimed at meeting basic living costs, differs from the legal minimum wage, the lowest legally required pay. Currently, Malaysia's statutory minimum wage is RM1,700. The RM3,100 figure is solely a living wage benchmark for certain government-linked companies and investment companies. Syed Hussain warned that for businesses currently paying below RM3,100, the shift could lead to wage compression, impacting the entire payroll, not just the lowest-paid workers. Many MSMEs are already struggling with rising costs in utilities, financing, and logistics. Syed Hussain argued that while policies suitable for GLCs and GLICs may not be applicable to the broader private sector, MEF remains committed to progressive, productivity-driven wage growth within the National Wages Consultative Council. Similarly, Dr Chin Chee Seong, president of the SME Association of Malaysia, described the RM3,100 proposal as financially unsustainable for many small businesses. He noted that with businesses already adjusting to the recent RM1,700 minimum wage hike and facing rising costs, a more than 80% increase to RM3,100 would be unsustainable. Dr Chin cautioned that such a rapid rise in labour costs could force employers to downsize or freeze hiring, disproportionately affecting young and lower-skilled workers. He advocated for government support to help SMEs enhance productivity through digitalisation, AI adoption, and access to affordable financing.",
  "summary": "KUALA LUMPUR: Employer groups have raised concerns over a proposal to set RM3,100 as the new statutory minimum wage, warning it could strain micro, small and medium enterprises (MSMEs) and lead to job losses.",
  "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."
}