Summary
- Lim Guan Eng warned that an abrupt minimum wage increase for foreign workers could raise costs for businesses locked into long-term contracts.
- He said SMEs may struggle to renegotiate existing agreements when labour costs suddenly change.
- The government has yet to announce whether Budget 2027 will include a new minimum wage rate.
KUALA LUMPUR, October 8 — Bagan MP Lim Guan Eng has urged the government to consider the impact on businesses before raising minimum wages for foreign workers in Budget 2027.
Lim said many companies have multi-year contracts based on previously agreed labour costs, leaving limited room to absorb sudden increases.
He warned that higher costs could pressure operating margins, particularly among small and medium enterprises. Lim has previously called for foreign workers to be excluded.
Grom any new minimum wage increase and for the mandatory 2% EPF contribution involving foreign workers to be abolished.
