Don't exploit RM2,000 minimum wage, Fomca urges bosses

The Federation of Malaysian Consumers Associations said the RM300 increase in the minimum wage would boost workers’ purchasing power. (Bernama pic) PETALING JAYA: Businesses should not use the increase in the minimum wage to RM2,000 as an excuse to raise the prices of goods and services unreasonably, says the Federation of Malaysian Consumers Associations.

Fomca chief executive T Saravanan said the government must monitor prices to ensure rising living costs do not offset the benefits of the wage increase.

He said Fomca supported the government’s move to raise the minimum wage from RM1,700 to RM2,000 a month, as it would boost workers' purchasing power.

However, the government should provide further details on which categories of workers and employers would be subject to the new rate, including the exemption criteria for small businesses.

“The government must monitor the possibility of unreasonable price increases for goods and services on the grounds of higher wage costs,” he told FMT.

The increase in the minimum wage, from RM1,700 to RM2,000 a month from next June was announced in the 2027 budget tabled by Prime Minister Anwar Ibrahim today. It is expected to benefit more than four million workers.

However, businesses with annual sales of less than RM50 million would be exempted from the new rate to give them room to adjust their business models.

The Consumers Association of Penang described the increase to RM2,000 as an improvement but said the amount remained too low to meet workers' living expenses.

“CAP has long advocated an increase in the minimum wage, including calling for the implementation of a living wage," said CAP honorary secretary S Mageswari. "An increase in the minimum wage is necessary to ensure social and economic justice."

She said an increase in the minimum wage must be accompanied by measures to control inflation and monitor prices so that the people can enjoy its real benefits without being burdened by rising living costs.

Workers in small enterprises were equally entitled to benefit from the new minimum wage and should not continue to be left behind. She urged the government to provide additional support, including transitional assistance to help employers adjust to the wage increase.