SMEs exempted from new minimum wage hike for now, says cabinet
The Malaysian Cabinet has decided to exempt micro, small, and medium enterprises (SMEs) from a new minimum wage hike to protect them from economic pressures. The government plans to support workers through alternative measures like wage subsidies under the Progressive Wage Policy.
Why it matters
Balancing worker welfare with the economic viability of small businesses is a critical challenge for developing economies facing inflation.
PETALING JAYA: The Cabinet has agreed that workers’ wages should continue to increase, but micro, small and medium enterprises (SMEs) will be exempted from the new minimum wage increase for the time being.
Entrepreneur Development and Cooperatives Minister Steven Sim said the decision took into account the operating cost pressures and current economic challenges faced by local businesses, particularly SMEs.
“I raised the issue of the minimum wage at today’s Cabinet meeting.
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