Retailers and SMEs Urge Government to Delay Minimum Wage Increase

Six retail and small and medium enterprise (SME) associations have urged the government to postpone any increase in the minimum wage, citing rising operating costs and continued economic uncertainty.

The groups said local retailers and SMEs are facing higher expenses involving logistics, energy, rent, inventory and labour, while also competing with international brands. 

Retail Groups Warn Higher Minimum Wage Could Add Pressure on Businesses

The associations said a proposed RM3,100 minimum wage, compared with the current RM1,700 rate, would represent an 82.4 per cent increase.

They estimated that for a business employing 20 workers, basic monthly wages would rise from RM34,000 to RM62,000, adding RM336,000 annually before statutory contributions, overtime and other employment-related costs. 

The groups said businesses unable to absorb the additional expenses could eventually pass some costs to consumers through higher prices.

They called for more time to manage current uncertainties while supporting a proposal for the government and employers to share the cost through wage subsidies, productivity improvements, training and technology incentives. The associations said such measures could help businesses adjust while supporting workers’ incomes.