Hamzah Calls for Uniform RM2,000 Minimum Wage With Support for Employers

Opposition leader Hamzah Zainudin says exempting micro, small and medium enterprises (MSMEs) from the RM2,000 minimum wage, due to take effect next June, will create inequality in the workforce.

Debating the 2027 budget in the Dewan Rakyat today, the Larut MP noted that companies with annual turnover below RM50 million would keep paying the current RM1,700 minimum. Larger firms would pay RM2,000. 

“RM300 Gap” Could Drive Workers Away From Small Businesses, Says Hamzah

He called for a uniform minimum wage for all workers, with aid or incentives for struggling employers.

Prime Minister Anwar Ibrahim, who tabled the budget on Friday, had said the exemption would give MSMEs time to adjust their business models. 

Hamzah argued the RM300 gap would push MSME workers towards higher-paying firms, making it harder for small employers to retain staff and forcing owners of shops, workshops and small factories to choose between raising wages and losing workers.

He also questioned the one-percentage-point cut in income tax for MSMEs, saying it would not help companies yet to turn a profit.

Hamzah proposed channelling MSME incentives through the Social Security Organisation, with aid tied to raising salaries, training workers and investing in automation. He also suggested a three-year, one-percentage-point corporate tax exemption for non-MSME firms that lift wages to the new minimum.