MEF warns RM3,100 minimum wage could strain small firms and limit entry-level hiring

The Malaysian Employers Federation warned that setting a minimum wage at RM3,100 could discourage employers from hiring fresh graduates and semi-skilled workers, especially among micro, small and medium enterprises. Datuk Dr Syed Hussain Syed Husman emphasized that large corporations can absorb higher payroll costs, but small manufacturers, neighbourhood retailers, family businesses and thin-margin service providers may struggle.

He highlighted the need for wage policies to consider regional variations, productivity, job complexity and firms' financial health. The federation also cautioned against treating living-wage estimates as mandatory across all sectors.