SAMENTA Welcomes Exemption for SMEs from Further Minimum Wage Increases
Kuala Lumpur, 1 October 2026 — SAMENTA has welcomed the federal government’s decision to exempt small and medium enterprises (SMEs) from further increases in the minimum wage, saying the move protects the livelihoods of 1.3 million SMEs nationwide at a time of persistent cost increases, compressed margins and global economic uncertainty.
“We welcome the decision by the Cabinet, championed by Minister of Entrepreneur Development and Cooperatives Steven Sim, to exempt SMEs from further increases in the minimum wage,” said SAMENTA President Datuk William Ng.
“The decision demonstrates the Madani government’s responsiveness to the ground realities faced by our local SMEs while ensuring that the workers’ welfare is protected.”
Wage growth must be anchored on productivity
SAMENTA said sustainable wage growth must be anchored on value creation and productivity gains, and strongly endorsed the government’s strategic focus on the Progressive Wage Policy as the right way forward.
By supporting productivity growth at both firm and worker levels, prosperity can be shared more equitably between employers and workers, Ng said.
He urged the government to partner with industry associations to deliver rapid, SME-centric training modules that support those productivity gains.
“Wage policy cannot be viewed in isolation. To foster capacity for higher pay, the government should continue addressing structural overheads, such as compliance costs, regulatory burdens and logistics and utility costs, alongside expanding access to low-interest working capital financing,” he said.
A call to SMEs that can afford to pay more
Despite the exemption, Ng urged SMEs that can afford higher wages to offer them to employees, in order to retain talent and build a loyal, motivated workforce that drives long-term competitiveness.
“SAMENTA remains committed to working alongside the Ministry of Entrepreneur and Cooperatives Development (KUSKOP), the Ministry of Human Resources and other relevant ministries to ensure that our SMEs transition into high-productivity, high-value enterprises capable of offering competitive, living wages to our workforce,” he added.
SAMENTA — the first association of small and medium enterprises in Malaysia — has served Malaysian SMEs since 1986.
SAMENTA Welcomes Exemption for SMEs from Further Minimum Wage Increases
Kuala Lumpur, 1 October 2026 — SAMENTA has welcomed the federal government’s decision to exempt small and medium enterprises (SMEs) from further increases in the minimum wage, saying the move protects the livelihoods of 1.3 million SMEs nationwide at a time of persistent cost increases, compressed margins and global economic uncertainty.
“We welcome the decision by the Cabinet, championed by Minister of Entrepreneur Development and Cooperatives Steven Sim, to exempt SMEs from further increases in the minimum wage,” said SAMENTA President Datuk William Ng.
“The decision demonstrates the Madani government’s responsiveness to the ground realities faced by our local SMEs while ensuring that the workers’ welfare is protected.”
Wage growth must be anchored on productivity
SAMENTA said sustainable wage growth must be anchored on value creation and productivity gains, and strongly endorsed the government’s strategic focus on the Progressive Wage Policy as the right way forward.
By supporting productivity growth at both firm and worker levels, prosperity can be shared more equitably between employers and workers, Ng said.
He urged the government to partner with industry associations to deliver rapid, SME-centric training modules that support those productivity gains.
“Wage policy cannot be viewed in isolation. To foster capacity for higher pay, the government should continue addressing structural overheads, such as compliance costs, regulatory burdens and logistics and utility costs, alongside expanding access to low-interest working capital financing,” he said.
A call to SMEs that can afford to pay more
Despite the exemption, Ng urged SMEs that can afford higher wages to offer them to employees, in order to retain talent and build a loyal, motivated workforce that drives long-term competitiveness.
“SAMENTA remains committed to working alongside the Ministry of Entrepreneur and Cooperatives Development (KUSKOP), the Ministry of Human Resources and other relevant ministries to ensure that our SMEs transition into high-productivity, high-value enterprises capable of offering competitive, living wages to our workforce,” he added.
SAMENTA — the first association of small and medium enterprises in Malaysia — has served Malaysian SMEs since 1986.
Sources
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