KUALA LUMPUR, Sept 30 — Micro, small and medium enterprises (MSMEs) will be exempted from the new minimum wage increase for now, taking into account the operating cost pressures and current economic challenges faced by the sector.
Entrepreneur Development and Cooperatives Minister Steven Sim Chee Keong said the decision was made by the Cabinet after he raised the minimum wage issue at today’s Cabinet meeting.
He said the Cabinet agreed that workers’ wages should continue to be increased, while ensuring the sustainability of local businesses, particularly MSMEs.
“The Government will adopt other approaches to help raise wages for workers in the MSME sector, including wage subsidy support under the Progressive Wage Policy, so that wage increases move in tandem with productivity growth,” he said in a statement today.
Steven said the approach aims to safeguard workers’ welfare through fairer wages while enabling MSMEs to remain competitive, expand their businesses and create employment opportunities.
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