Govt committed to controlling prices following minimum wage hike - minister

PARLIAMENT | The government will continue to strengthen efforts to stabilise the prices of essential goods to address concerns over rising living costs following the implementation of the RM2,000 minimum wage effective June 2027.

Economy Minister Akmal Nasrullah Nasir said the efforts include tightening enforcement of the Price Control and Anti-Profiteering Act, and implementing the Rahmah Sales and Madani Agro Sales programmes.

PARLIAMENT | The government will continue to strengthen efforts to stabilise the prices of essential goods to address concerns over rising living costs following the implementation of the RM2,000 minimum wage effective June 2027.

Economy Minister Akmal Nasrullah Nasir said the efforts include tightening enforcement of the Price Control and Anti-Profiteering Act, and implementing the Rahmah Sales and Madani Agro Sales programmes.

“The country’s inflation rate remains under control at 1.7 percent in the first quarter of 2026 (1Q 2026) and around 1.9 percent in 2Q.

“We also noted that food inflation was around 1.4 percent in May and June, and between 1.8 and 1.9 percent in July and August,” he said in today's Dewan Rakyat's question-and-answer session.

He was responding to Aminolhuda Hassan (Harapan-Sri Gading), who asked about government measures to ensure the RM2,000 minimum wage implementation would not result in job cuts, higher prices of goods or increased operating costs for small businesses.

Akmal said the minimum wage increase to RM2,000 from RM1,700 is expected to benefit more than four million workers.

“To ease the burden on micro, small and medium enterprises (MSMEs), businesses with annual sales below RM50 million will be exempted to enable them to adjust business models and restructure their financial positions.

“This measure is important to ensure that employers can continue operating without taking drastic action, including laying off workers,” he said.

Those affected by company restructuring following the minimum wage adjustment, and who are covered under the Employment Insurance System, are eligible to claim benefits, including a job-search allowance up to six months.

- Bernama