RM2,000 Minimum Wage Agreed Upon, MSMEs Given More Time – Johan
KUALA LUMPUR, Oct 12 (Bernama) -- The RM2,000 minimum wage under Budget 2027 has been agreed upon by the National Wage Consultative Council, which also comprises representatives of workers and employers.
Treasury secretary-general Tan Sri Johan Mahmood Merican said that at the Cabinet level, consideration had been given to extending the implementation period for micro, small and medium enterprises (MSMEs) to avoid burdening them.
"The minimum wage amount is not disputed and has been agreed upon.
"We will start with large companies first because we also understand that SMEs are among those affected by the conflict in West Asia, which may require more time to adjust their business models," he told the media after attending the post-Budget 2027 debate session organised by the Malaysian Economic Association today.
Prime Minister Datuk Seri Anwar Ibrahim previously announced that the minimum wage would be increased to RM2,000 from RM1,700 per month, effective June 2027, affecting more than four million workers.
In the Budget 2027 announcement last Friday, Anwar also said that SMEs with annual sales below RM50 million would be temporarily exempted from implementing the new minimum wage of RM2,000 per month.
Asked about managing the risk of higher subsidies next year while maintaining a fiscal deficit target of 3.3 per cent, Johan said the government would focus on maintaining investor confidence to demonstrate Malaysia’s ability to manage its finances in a disciplined manner.
"We are still adhering to the commitments made under the Public Finance and Fiscal Responsibility Act 2023 (Act 850) so that we can achieve a fiscal deficit as low as three per cent by 2028.
"With that, as announced in Budget 2027, we are targeting 3.6 per cent this year and 3.3 per cent next year. So, we are on track to achieve three per cent," he said.
Johan also noted that the government acknowledged the uncertainty in West Asia and had taken into account projections that oil prices would remain high at current levels.
"We estimate the petroleum product subsidy this year to be around RM40 billion. But as has been implemented this year, when oil prices are higher than expected, we will make adjustments accordingly," he added.
-- BERNAMA