The government is weighing the impact of a proposed increase in the minimum wage from RM1,700 to RM2,000 a month, with a focus on balancing workers’ welfare and the ability of employers, particularly micro, small and medium enterprises (MSMEs), to remain viable.
Economy Minister Akmal Nasrullah Mohd Nasir said the government was considering how the proposed increase could be implemented while supporting workers without placing excessive pressure on smaller businesses.
“We are certainly taking several segments into account and looking at how the implementation can be balanced so that we continue to support our workers while also ensuring the survival of employers, especially small businesses and MSMEs,” he said.
He was speaking to reporters after visiting the Jalan Padang Tembak Police Housing Area on Monday.
Akmal said Malaysians should wait for Prime Minister Datuk Seri Anwar Ibrahim to announce the government’s decision during the tabling of Budget 2027 on October 9.
The proposal to raise the minimum wage to RM2,000 has been put forward as a measure to boost the income of lower-paid workers. However, concerns have also been raised over its potential impact on business operating costs, as well as the prices of goods and services.
Investment strategy specialist and national economist at IPP Wealth Managers Ltd, Mohd Sedek Jantan, said the proposed increase would represent a 17.6% rise from the current RM1,700 minimum wage.
He noted that this was significantly higher than labour productivity growth, which stood at between 4.3% and 4.8% in the first quarter of 2026.
The government is expected to provide further details on the minimum wage proposal when Budget 2027 is tabled on October 9.
