KUALA LUMPUR, Oct 7 — Federal lawmaker Lim Guan Eng (Bagan - DAP) today again called on the government to consider the financial impact on small and medium businesses amid rumours it could raise the minimum wage when tabling Budget 2027, warning that abrupt hikes could disrupt long-term commercial agreements.
Lim, a former finance minister, argued that many enterprises operate under binding multi-year contracts where labor costs are fixed at agreed-upon rates.
“Many businesses have long-term contracts with foreign workers at agreed rates,” the DAP leader said at a press conference in Parliament this afternoon.
“A sudden wage increase would place an unexpected financial burden on employers.”
Lim, a former finance minister, noted that unexpected cost surges could strain operating margins and create operational friction for businesses unable to renegotiate existing contractual terms on short notice.
