Selangor:The temporary exemption from the new minimum wage for micro, small, and medium enterprises (MSMEs) with annual sales below RM50 million must be carried out with transparency and a clear implementation plan.

According to BERNAMA News Agency, Mohd Yahya Mat Sahri, chairman of the Islamic Chamber of Commerce Malaysia (DPIM) Selangor branch, emphasized the importance of this sector to the local economy. He called for a detailed outline of the exemption period, eligibility criteria, and transition mechanisms to safeguard both employers' and workers' rights.

Mohd Yahya, who also serves as the Selangor PKR Strategy director, noted that financial facilities amounting to RM57 billion should be genuinely accessible to small traders. He highlighted the need for financing support, digitalisation, automation, and skills training to align with the wage increase agenda.

Prime Minister Datuk Seri Anwar Ibrahim announced during the presentation of Budget 2027 that MSMEs with sales below RM50 million would be exempt from the new minimum wage of RM2,000 starting in June 2027. This measure includes stricter conditions for non-MSME companies regarding tax deductions on salary expenses, aiming to reduce the hiring of undocumented foreign workers.

Economy Minister Akmal Nasrullah Mohd Nasir stated that the exemption is intended to help employers restructure their financial standing without resorting to drastic measures like layoffs. Mohd Yahya also supported the government's decision to raise the minimum wage from RM1,700, aiming to uphold workers' dignity and enhance purchasing power.

He stressed the need for strict enforcement to protect existing jobs and urged the government to take action against non-compliant employers. The government should monitor living costs, wage growth, and job quality to ensure the wage hike does not lead to downsizing or job replacement without plans for upskilling. Mohd Yahya concluded that the ultimate goal is for workers to live with dignity, for small traders to thrive, and for young people to find jobs matching their qualifications.