Proposed RM3,100 minimum wage could shock labour market, says FMM
The Federation of Malaysian Manufacturing (FMM) has warned that a proposed minimum wage hike to RM3,100 could destabilize the labor market. Employers argue that the recent implementation of the RM1,700 rate is still being absorbed and a further increase would hurt business viability.
Why it matters
This highlights the ongoing tension between labor unions seeking cost-of-living adjustments and business groups concerned about economic competitiveness and payroll inflation.
The Federation of Malaysian Manufacturing said the RM1,700 minimum wage was only fully implemented across all employers in August 2025, and businesses are still adjusting to its impact.
PETALING JAYA: The Federation of Malaysian Manufacturing (FMM) today cautioned that the RM3,100 minimum wage proposed by the Malaysian Trades Union Congress (MTUC) could cause a major shock to the labour market and businesses’ cost structures.
In a statement, FMM president Jacob Lee said an increase from the current minimum wage of RM1,700 to RM3,100 would be unprecedented, as adjustments have been made progressively since the statutory minimum wage was introduced in 2013.
"The current RM1,700 rate has also only been fully implemented across all employers since August 2025, and businesses are still adjusting to its impact," said Lee.
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