KUALA LUMPUR, March 21 —The government is reportedly considering allowing some micro businesses as well as small and medium enterprises (SMEs) to defer increasing the wages of its employees to meet the soon-to-be minimum of RM1,500.

Deputy Human Resources Minister Datuk Awang Hashim said details of the deferment is still being discussed and will be announced after the implementation of the new minimum wage on May 1, Utusan Malaysia reported last night on its website.

“What kind of employers will be eligible for deferment among SMEs, how many employees do they need to have to be eligible for deferment, that too we will determine after this,” he was quoted saying at a ministry event in Pendang, Kedah yesterday.

Prime Minister Ismail Sabri announced last Saturday that Malaysia will be implementing a floor wage set at RM1,500 from May 1.


The announcement was made during his winding-up speech at the Umno general assembly where Ismail Sabri is vice-president.

Business organisations such as the Malaysian Employers Federation and the Federation of Malaysian Manufacturers expressed disappointment in the coming hike, citing rising costs that may impede their recovery from the Covid-19 pandemic and cause businesses to close down.

At the same time, workers’ unions have welcomed the Prime Minister’s announcements, calling it a boon in troubled times.


The current minimum wage, implemented in January 2020, is RM1,200 a month.