SME groups warn mandatory salary disclosures could hurt hiring and talent retention

Representatives of Malaysia's SME sector contend that requiring all firms to publish salary ranges could backfire by discouraging applicants and exposing smaller companies to poaching by better-funded competitors. William Ng of the Small and Medium Enterprises Association explained that many SMEs use flexible pay tied to individual performance, making a one-size-fits-all disclosure impractical. Syed Hussain Syed Husman of the Malaysian Employers Federation echoed the concern, noting that smaller firms lack the HR infrastructure of larger corporations and would face higher compliance costs.

Both leaders propose starting with larger employers on a voluntary basis and creating clear exemptions for micro and small businesses. They also warned that unchecked disclosures might trigger wage inflation, aggressive recruitment, and workplace tension. Economy Minister Akmal Nasir has indicated the government is exploring ways to improve salary transparency without imposing rigid wage targets.