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FORMER finance minister Lim Guan Eng has called for foreign workers to be excluded from any minimum wage increase under the upcoming Budget, while urging the government to temporarily suspend the requirement for employers to contribute 2% of their wages to the Employees Provident Fund (EPF).
Lim said imposing both measures on foreign workers would add to the cost burden on employers, particularly micro, small and medium enterprises (MSMEs) already struggling with higher operating costs and a challenging economic environment.
He said he supported raising wages for Malaysian workers, as current wage levels did not reflect workers’ productivity and corporate earnings.
However, he said any increase should be matched against prevailing economic conditions.
The current minimum wage is RM1,700 a month, with reports indicating it could be raised to RM2,000 when the federal Budget is tabled, amid efforts to help workers cope with rising living costs.
Lim said the economic environment remained constrained by external pressures, including higher oil prices, tariffs, trade wars and supply chain disruptions.
He said it was therefore important to ensure Malaysian employers remained competitive, particularly those in the MSME sector.
Lim also called for the 2% EPF contribution requirement for foreign workers to be put on hold.
He said the position was not aimed at foreign workers but reflected the need to protect Malaysian employers and workers facing higher living costs.
“We need to protect ourselves first in such uncertain times,” he said. - September 30, 2026
