KUALA LUMPUR: The proposed exemption of micro, small and medium enterprises (MSMEs) with annual sales turnover below RM50 million from the minimum wage increase under Budget 2027 will give smaller businesses the necessary breathing space to strengthen their operations, improve productivity and prepare for future wage adjustments, according to the Malaysian Employers Federation (MEF).
MEF senior advisor for government, media and international engagement Datuk Dr Syed Hussain Syed Husman said the proposed exemption recognised that businesses operated under different circumstances and did not have the same financial capacity to absorb higher operating costs.
Hence, he said, the exemption from the increase in the national minimum wage from RM1,700 to RM2,000, effective June 1, 2027, was a practical and responsible approach to support business sustainability.
