PETALING JAYA: Workers who lose their jobs as companies restructure to cope with Malaysia’s new RM2,000 minimum wage will be able to claim unemployment benefits for up to six months, provided they are covered under the Employment Insurance System (EIS).
Economy Minister Akmal Nasrullah Mohd Nasir said the assistance would provide temporary financial relief to affected workers while they searched for new employment, amid concerns that the wage increase could trigger retrenchments and raise operating costs.
“If adjustments to the minimum wage result in company restructuring and employee retrenchments, affected workers covered under the EIS will be eligible to claim benefits, including the Job Search Allowance, to support their livelihood for up to six months,” he told the Dewan Rakyat today.
He was responding to Sri Gading MP Aminolhuda Hassan, who sought clarification on measures to prevent job losses, rising consumer prices and additional financial pressure on smaller businesses following the wage revision.
Under Budget 2027, Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim announced that the minimum wage would increase from RM1,700 to RM2,000 from June next year, benefiting more than four million workers.
However, Akmal said the government recognised the need to balance higher employee earnings with business sustainability, particularly among micro, small and medium enterprises (MSMEs).
He said businesses with annual sales of less than RM50 million would be exempt from the new minimum wage requirement to give them sufficient time to adjust their finances and operations.
The MSME sector currently employs about 8.09 million workers, accounting for 48.7% of Malaysia’s workforce.
Akmal said enforcement of the revised minimum wage would be carried out by the labour departments in Peninsular Malaysia, Sabah and Sarawak under the National Wages Consultative Council Act 2011.
Workers could lodge complaints against employers who failed to comply, while offenders could face legal action, including fines or imprisonment.
Addressing concerns that higher wages could push up consumer prices, Akmal said inflation had remained manageable despite previous wage adjustments.
He said inflation eased from 1.8% in 2024 to 1.4% in 2025, while standing at 1.7% in the first quarter of 2026 and between 1.9% and 2% in the second quarter.
“Strong GDP growth of 5.4% in the first quarter and 6% in the second quarter of 2026 also demonstrates that minimum wage increases strengthen domestic demand without undermining price stability,” he said.
Akmal added that the government would intensify price monitoring and anti-profiteering enforcement, while allocating RM700 million for 30,000 targeted Rahmah Sales programmes nationwide.
Another RM50 million would fund 5,000 Agro Madani sales programmes, offering fresh produce, including poultry, fish, vegetables and fruit, at prices between 10% and 30% below market rates.