THE government will weigh workers’ welfare against the ability of micro, small and medium enterprises (MSMEs) to remain viable before deciding on a proposed increase in the minimum wage from RM1,700 to RM2,000 a month, Economy Minister Akmal Nasrullah Mohd Nasir said today.
He said the implementation needed to be carefully balanced to improve the welfare of workers without placing excessive pressure on small businesses.
“Certainly, from that perspective, we are taking into account several segments and how the implementation can be balanced so that we can continue to support our workforce while ensuring the survival of employers, particularly small business owners and MSMEs.
“It would be best to wait for the announcement by Prime Minister Datuk Seri Anwar Ibrahim in Budget 2027, which will be tabled on Oct 9,” he said.
He was speaking at a press conference after visiting the Jalan Padang Tembak Police Housing Scheme in Kluang today.
The proposed increase to RM2,000 has been raised as a measure to boost the incomes of low-wage workers, but concerns have also been raised over its potential impact on business operating costs and the prices of goods and services.
Investment strategist and economist at IPP Wealth Managers Ltd, Mohd Sedek Jantan, said the proposed increase represented a 17.6% rise, compared with labour productivity growth of between 4.3% and 4.8% in the first quarter of 2026. - September 28, 2026
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