Business groups urge Putrajaya to defer minimum wage hike amid cost pressures
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Six Malaysian business associations have urged the government to delay a proposed minimum wage increase, citing economic pressures and rising operational costs. The groups argue that SMEs are struggling with inflation and global supply chain issues.
Why it matters
The debate highlights the tension between improving worker welfare and maintaining business viability in a challenging economic climate.
News ✕ Business groups urge Putrajaya to defer minimum wage hike amid cost pressures Published: Oct 2, 2026 12:45 PM A group of business associations today urged Putrajaya to defer any plan to increase the statutory minimum wage, citing economic uncertainties and rising operating costs.
In a joint statement, the six organisations said the government should review the timing of any increase, given the pressures businesses - particularly small and medium-sized enterprises and local retailers - are facing.
"The associations recognise the importance of improving workers’ incomes.
A group of business associations today urged Putrajaya to defer any plan to increase the statutory minimum wage, citing economic uncertainties and rising operating costs.
"However, businesses, particularly SMEs and local retailers, are facing significant pressures from rising operating, logistics, energy, rental, inventory, and labour costs, as well as increasing competition from international brands," they said.
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