by Theleaders | September 30, 2026 3:52 pm
KUALA LUMPUR, Sept 30 — The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) has proposed RM1,900 a month as an “appropriate” minimum wage, warning that a substantially larger increase could put pressure on smaller businesses and drive up consumer prices.
In a statement today, ACCCIM president Datuk Ng Yih Pyng said the proposed RM1,900 rate would represent an 11.8 per cent increase from the current minimum wage of RM1,700.
He said any adjustment should balance higher incomes for workers against the ability of micro, small and medium enterprises (MSMEs) to absorb rising labour costs.
“An appropriate level of minimum wage is RM1,900 per month, an increase of 11.8 per cent from the current RM1,700,” Ng said, adding that minimum wage increases must balance improvements in workers’ incomes against “the operational survival of MSMEs”.
ACCCIM said it was not opposed to raising the minimum wage, but cautioned that an excessively large increase could deliver a cost shock to businesses already operating on thin margins.
It said some businesses could pass the additional costs on to consumers through higher prices, while labour-intensive sectors such as retail, restaurants, food services, agriculture and small- and medium-sized manufacturing would be particularly exposed.
The chamber also argued that an increase in the wage floor could have a “ripple effect” on workers earning slightly above the minimum wage, while raising employers’ statutory contributions to the Employees Provident Fund (EPF), Social Security Organisation (Socso) and Employment Insurance System (EIS).
It warned that a one-size-fits-all approach could force some smaller businesses to reduce their workforce or shut down, and called for future increases to take into account productivity and performance, the financial capacity of individual sectors and wider economic and business conditions.
ACCCIM also urged the government to consider a tiered regional minimum wage system, arguing that differences in living costs, labour-market conditions and economic development meant a single nationwide rate might not suit every state.
“A uniform national minimum wage cannot be one-size-fits-all,” the chamber said, adding that wage levels should take into account regional differences in the cost of living, socioeconomic factors and business development.
It said a regional system could allow higher wages in more expensive urban centres while protecting low-margin businesses in economically weaker areas from unsustainable labour-cost increases and potential job losses.
Malaysia’s RM1,700 monthly minimum wage took effect on February 1, 2025 for employers with five or more workers and employers carrying out professional activities, regardless of workforce size. It was extended to all employers from August 1, 2025.
Source URL: https://theleaders-online.com/acccim-says-rm1900-an-appropriate-minimum-wage-warns-steeper-hike-could-hurt-msmes/
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