Cabinet agrees to pause further minimum wage rises for smaller firms
Steven Sim said the government would use alternatives including progressive wage policy subsidies to raise pay alongside productivity.
Free Malaysia Today reported that the Cabinet had agreed to temporarily exclude micro, small and medium-sized enterprises from additional minimum wage increases. The decision comes as the government reviews the minimum wage.
Minister of Entrepreneur Development and Cooperatives Steven Sim told the news site that wages needed to rise, but smaller businesses also needed protection as they faced economic challenges and pressure from operating costs.
Sim said the government would pursue other ways to lift workers’ pay in the sector. These would include subsidies through the progressive wage policy, with pay increases accompanying improvements in productivity.
Prime Minister Datuk Seri Anwar Ibrahim has indicated that a minimum wage increase is expected. Details are due at the tabling of Budget 2027 on Oct 9.
The current minimum wage is RM1,700 per month and took effect in August 2025. A review is required at least every two years under the National Wages Consultative Council Act 2011.
