Summary
- Cabinet agreed that Malaysian wages should continue to rise.
- MSMEs will be temporarily exempted from the upcoming minimum wage increase.
- The government plans to support higher MSME wages through measures including Progressive Wage Policy subsidies.
KUALA LUMPUR, September 30 — Malaysia’s Cabinet has agreed to temporarily exempt micro, small and medium enterprises from the upcoming increase in the minimum wage.
Entrepreneur Development and Cooperatives Minister Steven Sim said on Wednesday that cabinet agreed wages should continue rising but recognised that MSMEs face operating-cost and economic pressures.
Instead, the government will pursue other measures to raise wages in the sector, including wage subsidies under the Progressive Wage Policy, linking higher pay with productivity improvements.
The new minimum wage rate has yet to be officially announced. Human Resources Minister R. Ramanan said Tuesday that Cabinet approval was required before an announcement.
