KUALA LUMPUR, Oct 9 (Bernama) -- The introduction of a RM2,500 starting salary for semi-skilled jobs and graduates, announced by Prime Minister Datuk Seri Anwar Ibrahim in Budget 2027, should be implemented without affecting existing allowances or employment terms, said the Malaysian Islamic Youth Movement (ABIM).
Its president Ahmad Fahmi Mohd Samsudin said the job categories covered, employer coverage, effective date and implementation mechanism for the rate needed to be clarified to ensure workers could benefit from the initiative.
“Enforcement must ensure that the benefits of an increase in basic wages are not eroded through reductions in allowances or changes to employment terms that disadvantage workers,” he said in a statement.
When tabling Budget 2027 in the Dewan Rakyat today, the Prime Minister announced that the government would introduce a minimum monthly salary of RM2,500 for graduates and semi-skilled jobs as an initial step under reforms to the workers’ income framework.
Anwar said the measure aimed to ensure that wages received by workers were more commensurate with their qualifications and skills.
Commenting on the increase in the minimum wage to RM2,000, which will take effect in June 2027, Ahmad Fahmi said ABIM recognised the capacity of micro, small and medium enterprises (MSME) to bear higher wage and contribution costs.
However, he said the exemption for MSMEs with annual sales below RM50 million needed to be clarified, particularly in terms of its scope, duration and the number of workers excluded from the new rate.
He said the government should provide a transition plan with clear timelines and targeted support to improve productivity based on the actual capabilities of businesses.
“The sustainability of businesses and workers’ right to earn a decent wage must be safeguarded together,” he said.
Meanwhile, he described the maintenance, insurance and contribution assistance package jointly funded by the government and Grab as a positive step, adding that its coverage should also be clarified and protection extended to workers across different platforms.
“The setting of minimum income rates must take into account net income after work-related costs, with the involvement of workers’ representatives and effective dispute resolution channels. Social protection must remain continuous when a person uses multiple platforms or changes jobs,” he said.
He said the automatic registration of citizens as members of the Employees Provident Fund at the age of 18 should be accompanied by contribution assistance for young people with low or irregular incomes.
He said opening an account must be followed by the ability to build savings, while housing and business financing should be aligned with borrowers’ repayment capacity, supported by affordable rental options near workplaces, as well as mentoring and market access for young entrepreneurs.
-- BERNAMA