Kuala Lumpur:The RM2,000 minimum wage outlined in Budget 2027 has received approval from the National Wage Consultative Council, which includes workers and employers' representatives.

According to BERNAMA News Agency, Treasury secretary-general Tan Sri Johan Mahmood Merican mentioned that the Cabinet is considering extending the implementation period for micro, small, and medium enterprises (MSMEs) to prevent them from being overly burdened.

The minimum wage increase, from RM1,700 to RM2,000 per month, was announced by Prime Minister Datuk Seri Anwar Ibrahim and is set to take effect in June 2027, impacting over four million workers. Anwar also indicated that SMEs with annual sales below RM50 million would be temporarily exempt from the new wage requirements.

Addressing concerns about maintaining fiscal targets while managing higher subsidies, Johan stated that maintaining investor confidence is crucial to demonstrating Malaysia's financial discipline. The government aims to achieve a fiscal deficit as low as three percent by 2028, with targets of 3.6 percent for this year and 3.3 percent for next year.

Johan further noted the government's awareness of the uncertainties in West Asia and its impact on oil prices, which are expected to remain high. He estimated the petroleum product subsidy for this year at around RM40 billion and emphasized that adjustments would be made if oil prices exceed expectations.