Lim Guan Eng urges minimum wage hike to apply only to Malaysian workers
Bagan MP Lim Guan Eng called on the government to limit any upcoming minimum-wage increase to Malaysian employees, warning that extending it to foreign workers would raise business costs.
Lim Guan Eng, the Bagan MP and former finance minister, urged the government to ensure that any forthcoming increase to the minimum wage be limited to Malaysian workers, citing concerns from small and medium enterprises about higher labour costs. He warned that including foreign employees in the hike would further strain business finances, especially for firms already facing rising expenses. The call precedes the Budget 2027 presentation, where a higher minimum wage is anticipated but not yet set.
Human Resources Minister R Ramanan has said the government is still deciding on the exact figure, dismissing speculation about a specific range. Earlier, the cabinet agreed that SMEs would be temporarily exempt from the new minimum-wage level, though Lim questioned how long that exemption would last. He also reiterated a proposal to exempt both employers and foreign workers from mandatory Employees Provident Fund contributions, arguing that existing migrant contracts should not be altered retroactively.
Why it matters
The stance could shape future wage policy and affect costs for Malaysian businesses and migrant workers.
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