KUALA LUMPUR, Sept 30 — The Cabinet has agreed to exempt micro, small, and medium enterprises (MSMEs) from the new minimum wage rate increase for the time being.
Entrepreneur Development and Cooperatives Minister Steven Sim Chee Keong said the decision was made after taking into account the sector's capability as it faces operational cost pressures and current economic challenges.
"The government will take other approaches to help raise employee wages in the MSME sector, including wage subsidy support under the Progressive Wage Policy, so that wage increases move hand-in-hand with productivity growth," he said in a statement today.
Sim added that the minimum wage issue was raised during today's Cabinet meeting and said the Cabinet agrees that people's wages must continue to rise, but local businesses, particularly MSMEs, must also be protected.
The government wants to safeguard workers' welfare with fairer wages, while keeping MSMEs competitive so they can keep growing and creating jobs.
Yesterday, Human Resources Minister Datuk Seri Ramanan Ramankrishnan said the government has yet to decide on the new minimum wage rate, including claims that it would be raised to RM2,000, RM2,100, or RM2,200.
Any announcement on the new rate will be made only after obtaining Cabinet approval, including from Prime Minister Datuk Seri Anwar Ibrahim.
The media previously reported that Anwar announced the RM1,700 minimum wage rate is expected to be raised, with details to be announced when the 2027 Budget is tabled next Friday (October 9).
