Minimum wage adjustment must balance worker welfare and employer sustainability

KLUANG, 29 SEPTEMBER 2026 —

Kluang, 28 September – Economy Minister Akmal Nasrullah Mohd Nasir stated that the government is prioritizing a balance between worker welfare and business sustainability when considering proposals to adjust the minimum wage.

Speaking in Kluang on 28 September, the minister emphasized that this equilibrium is critical to preventing operational cost pressures on employers, particularly Micro, Small and Medium Enterprises (MSMEs), following any potential wage increases.

Akmal explained that the government is evaluating various segments and implementation mechanisms to ensure that the workforce continues to be supported while maintaining the viability of businesses. He noted that the primary concern is to avoid placing undue financial strain on MSMEs, which are sensitive to changes in labor costs. The minister highlighted that the decision-making process involves a careful assessment of how wage adjustments impact different sectors of the economy.

The comments were made in response to expert views suggesting that raising the minimum wage from RM1,700 to RM2,000 could have repercussions on the prices of goods and services. Akmal acknowledged these perspectives but did not confirm whether the government intends to implement this specific increase. Instead, he focused on the broader principle of balancing labor costs with business continuity, indicating that the final decision will depend on a comprehensive review of these factors.

When asked about the focus of the 2027 Budget, Akmal directed attention to Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim. He stated that the details of the budget would be elaborated by Anwar during the upcoming parliamentary session. The minister advised the public to await the formal presentation of the 2027 Budget for specific policy directions and financial allocations.

Akmal’s remarks underscore the government’s cautious approach to wage policy, recognizing the dual mandate of protecting workers’ livelihoods and ensuring the economic resilience of small businesses. By highlighting the role of MSMEs, the minister signaled that any wage adjustments will be tailored to minimize adverse effects on the sector that forms a significant part of the Malaysian economy. This approach reflects a strategic effort to maintain economic stability while addressing income adequacy for low-wage workers.

The next major development in this policy area is scheduled for 9 October, when Datuk Seri Anwar Ibrahim is expected to present the 2027 Budget in Parliament. Akmal urged the public to wait for this presentation to gain clarity on the government’s specific plans and priorities for the coming fiscal year. The timing of this announcement aligns with the standard parliamentary calendar for budget presentations, providing a definitive timeline for further policy disclosures.

Related: Akmal Nasrullah Mohd Nasir · Kluang