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Hamzah urges uniform RM2,000 minimum wage to close gap between large firms and small businesses

During the 2027 budget debate, Hamzah highlighted that the RM2,000 minimum wage applies only to large firms, while small enterprises (PMKS) remain at RM1,700, creating a two-tier labour market.

In the Dewan Rakyat debate on the 2027 budget, Hamzah pointed out that the RM2,000 minimum wage applies only to large corporations, while small and medium enterprises (PMKS) continue to pay a floor of RM1,700. He noted that PMKS employ roughly eight million people, about half the nation’s workforce, and that the RM300 disparity may encourage workers to leave for higher-paying large firms. This, he argued, would make it harder for small shop, workshop and factory owners to retain staff.

Hamzah also criticized a one-percent income-tax reduction for PMKS, saying it does not aid unprofitable businesses. He urged the government to standardise the minimum wage for all workers and to provide conditional incentives, such as a PMKS incentive fund through Perkeso, to help small employers raise wages while improving productivity. Additionally, he suggested a one-percent corporate-tax relief for three years for firms that adopt the new wage level.

Why it matters

A split minimum wage could widen income inequality and destabilise Malaysia's small-business sector.

In this story

minimum wageRM2,000RM1,700two-tier labour marketbudget 2027small businessesincome tax cutcorporate tax relief
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