PETALING JAYA: A leading small-medium business group has welcomed the Cabinet’s move to temporarily shield micro, small and medium-sized enterprises (MSME) from further minimum wage hikes, calling it a crucial step to protect businesses and job security across the country.
Small and Medium Enterprises Association of Malaysia (Samenta) president Datuk William Ng yesterday said the move would protect the livelihoods of 1.3 million SME nationwide.
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He added that the decision came at the right time, as persistent rising costs, thinner margins and uncertainty in the global economy were placing heavy strain on small businesses.
He also said it shows that the Madani government is sensitive to the realities faced by MSME while still looking after the welfare of workers.
On Wednesday, Entrepreneur and Cooperatives Development Minister Steven Sim announced that the Cabinet had agreed to keep MSME out of the new minimum wage increase for now, after considering the sector’s capacity to cope with mounting operating costs and the present economic climate.
Ng said the exemption offers small firms immediate breathing room as expenses climb, profit margins shrink and the economic outlook remains uncertain.
He added that lasting wage growth should rest on value creation and higher productivity, and voiced support for the government emphasis on the Progressive Wage Policy.
He also urged the government to partner with industry associations to roll out MSME-focused training modules that boost productivity, while addressing structural overhead burdens such as compliance requirements, regulation, logistics and utilities.
Separately, Malaysian Employers Federation (MEF) senior advisor for government, media and international engagement Datuk Dr Syed Hussain Syed Husman said any review of the wage floor must strike a careful balance between the welfare of workers, labour productivity and what employers could afford.
He added that MEF backs rising wages, but increases must be sustainable and cannot ignore productivity, competitiveness and the ability of firms to absorb the extra expense. He also said the goal should be higher pay without undermining the very businesses that create jobs.
