Hamzah warns of inequality in exempting MSMEs from RM2,000 minimum wage
Opposition leader Hamzah Zainudin has criticized the Malaysian government's decision to exempt MSMEs from the upcoming RM2,000 minimum wage. He argues that this creates an unfair wage gap that will lead to labor instability and hinder smaller businesses.
Why it matters
The debate reflects broader economic tensions regarding wage growth, business sustainability, and labor market policy in Malaysia.
Opposition leader Hamzah Zainudin said aid could be conditionally provided to employers that have raised salaries, trained workers and invested in automation.
KUALA LUMPUR: Opposition leader Hamzah Zainudin says that exempting micro, small and medium enterprises (MSMEs) from the RM2,000 minimum wage to be implemented next June will create inequality in the workforce.
Debating the 2027 budget in the Dewan Rakyat today, the Larut MP said the exemption granted to companies with an annual turnover below RM50 million would see their workers continue to be paid the current minimum of RM1,700.
"Bigger companies will have a minimum wage of RM2,000, while the minimum wage at MSMEs will remain at RM1,700," he said, calling for a uniform minimum wage for all workers alongside aid or incentives for struggling employers.
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