Kuala Lumpur:The Malaysian Islamic Youth Movement (ABIM) has emphasized that the new RM2,500 starting salary for semi-skilled jobs and graduates, recently announced by Prime Minister Datuk Seri Anwar Ibrahim as part of Budget 2027, should not impact existing allowances or employment terms.
According to BERNAMA News Agency, ABIM's president Ahmad Fahmi Mohd Samsudin has called for clarity regarding the job categories covered, employer coverage, effective date, and implementation mechanism of the new salary rate to ensure it benefits workers. He stressed that the enforcement of this salary should prevent any reduction in allowances or unfavorable changes to employment terms.
During the Budget 2027 announcement in the Dewan Rakyat, the Prime Minister introduced the RM2,500 minimum monthly salary as a step towards realigning wages with workers' qualifications and skills. Ahmad Fahmi also addressed the upcoming increase in the minimum wage to RM2,000, effective from June 2027. He acknowledged the potential strain on micro, small, and medium enterprises (MSME) due to higher wage and contribution costs but noted the need for clear exemptions for MSMEs with annual sales below RM50 million.
ABIM advocates for a government-provided transition plan with specified timelines and targeted support to boost productivity according to each business's capacity. Ahmad Fahmi emphasized the importance of balancing business sustainability with workers' rights to fair wages.
He also praised the maintenance, insurance, and contribution assistance package from the government and Grab, highlighting the need for clear coverage details and extended protection for workers on various platforms. Ahmad Fahmi underlined the importance of considering net income after work-related costs and ensuring continuous social protection for workers using multiple platforms or changing jobs.
Furthermore, Ahmad Fahmi urged for automatic registration of citizens as Employees Provident Fund members at 18 years old, accompanied by contribution assistance for those with low or irregular incomes. He advocated for savings-building opportunities, housing and business financing aligned with repayment capacities, affordable rentals close to workplaces, and support for young entrepreneurs through mentoring and market access.