KUALA LUMPUR: Opposition leader Datuk Seri Hamzah Zainudin has warned that exempting micro, small and medium enterprises (MSMEs) from the RM2,000 minimum wage could create a two-tier workforce.
He said exempting businesses with annual revenue below RM50 million could leave their employees earning RM1,700, while those working for larger companies would receive at least RM2,000.
The disparity, he said, could drive workers away from smaller businesses to better-paying employers.
"An employer may tell his worker, 'I'm sorry, I cannot raise your salary to RM2,000 because the government has exempted companies earning below RM50 million, and mine falls under that category.'
"The worker may then reply, 'In that case, I've already applied elsewhere, and the manager at the fast-food chain next door has told me to come over because they are offering RM2,000,'" he said during the policy-stage debate on the 2027 Budget in the Dewan Rakyat today.
Hamzah said smaller businesses would struggle to retain staff, particularly when larger firms could afford to pay more.
He added that the minimum wage increase, scheduled to take effect in June 2027, could trigger wider wage adjustments as experienced workers sought to maintain pay differentials.
"If someone who has worked for three years is earning RM2,000, and a new worker now earns RM2,000, he will also ask for a RM300 increase to RM2,300," he said.
Such demands could push up operating costs, particularly in the manufacturing sector, despite the government's aim of raising incomes, he said.
"I know this is good because it allows more people to earn higher wages. But we must also help MSMEs by providing incentives to ensure their businesses remain stable," he said.
He urged the government to consider targeted assistance, including incentives channelled through the Social Security Organisation (Socso), to help MSMEs manage higher wage costs without disrupting their operations.
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