SHAH ALAM, Oct 13 (Bernama) -- The temporary minimum wage exemption for micro, small and medium enterprises (MSMEs) with annual sales below RM50 million must be implemented transparently with a clear roadmap.
Islamic Chamber of Commerce Malaysia (DPIM) Selangor branch chairman Mohd Yahya Mat Sahri said the sector is the backbone of the local economy that requires space to adjust operating costs, boost productivity, and strengthen cash flow.
Mohd Yahya, also the Selangor PKR Strategy director, said the government needs to detail the exemption period, eligibility criteria, and transition mechanism to safeguard employers' interests and workers' rights.
"At the same time, MSME financing facilities amounting to RM57 billion must also be genuinely accessible to small traders, rather than remaining merely big figures in budget documents.
"Financing support, digitalisation, automation, and skills training must move in tandem with the wage increase agenda," he said in a statement today.
On Oct 9, Prime Minister Datuk Seri Anwar Ibrahim, in tabling Budget 2027, said that MSMEs with sales revenue below RM50 million are exempt from the new minimum wage rate of RM2,000, which takes effect in June 2027.
The move is accompanied by stricter conditions for non-MSME companies to claim tax deductions on salary expenses, as part of efforts to curb the hiring of undocumented foreign workers.
Economy Minister Akmal Nasrullah Mohd Nasir said during Minister's Question Time in the Dewan Rakyat today that the exemption aims to ensure employers can restructure their financial standing without taking drastic measures, including laying off workers.
Elaborating, Mohd Yahya said DPIM also welcomed the government's decision to raise the minimum wage from RM1,700 to uphold workers' dignity, strengthen purchasing power, and narrow the gap between economic growth and household income.
"Workers are not merely the driving force of the economy but individuals who deserve to enjoy the fruits of national progress in a more equitable manner," he said.
However, he said implementing the higher minimum wage must be accompanied by strict enforcement to protect existing jobs.
He added that the government must protect workers by enforcing the minimum wage and taking action against non-compliant employers.
"Besides monitoring the cost of living, wage growth, and job quality, the wage hike should not drive employers to downsize or replace jobs without upskilling plans.
"True success is measured when workers can live with greater dignity, small traders continue to survive and grow, and young people secure jobs commensurate with their qualifications," he said.
-- BERNAMA