Kota Kinabalu: Any increase to the current RM1,700 minimum wage must take into account employers’ financial capacity, particularly micro, small and medium enterprises (MSMEs), said Liberal Democratic Party (LDP) leaders.
Its Vice President David Ong said said the proposed RM3,100 living-wage benchmark should not automatically become a nationwide statutory minimum wage, while Nicholas said wage policy must consider its wider impact on businesses, employment opportunities and consumers.
Ong said raising the minimum wage from RM1,700 to RM3,100 would represent an increase of more than 82 per cent, while a business with 10 workers could face an additional RM14,000 in basic monthly wages before other employment-related costs.
LDP Information Chief Nicholas Ban said Malaysia recorded 24,100 formal-sector workers affected by retrenchment in the first quarter of 2026, up almost 47 per cent from the same period last year, although the figure should not be taken as proof that minimum wage increases caused the retrenchments.
Both called for wage policies to consider factors including company size, profitability, industry, productivity and revenue, while urging the Government to support MSMEs through digitalisation, automation, skills training and productivity improvements.
They also called for a comprehensive assessment of any proposed wage increase, particularly its impact on Sabah’s economic environment, with Nicholas suggesting a reasonable transition period for businesses to adjust their cash flow and operations.
