PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim has acknowledged all views and concerns regarding the proposed increase in the minimum wage and mandatory Employees Provident Fund (EPF) contributions.
Government spokesman Fahmi Fadzil said the matter was raised at today's cabinet meeting chaired by the prime minister.
"Several decisions or announcements made during the tabling of the 2025 Budget on Oct 18 were brought to the prime minister's attention in light of these views.
"He will definitely take these views and concerns into account and we await any decision during the Finance Ministry's wrap-up, InshaAllah," he said at the weekly post-cabinet meeting press conference.
Fahmi also said views from plantation companies were also raised during the meeting, alongside those from small and medium enterprises (SMEs).
"The prime minister is certainly aware of all these perspectives."
Previously, the Small and Medium Enterprises Association Malaysia expressed concern about the proposed wage increase and higher mandatory EPF contributions in the 2025 Budget.
While its president Chin Chee Seong commended the government's focus on improving worker welfare, he warned that these measures could impose unsustainable financial strain on SMEs, many of which are still in a fragile state of recovery following the Covid-19 pandemic.
Chin stated that the proposal will not impact all sectors equally, with labour-intensive industries such as manufacturing, retail, and services being disproportionately affected compared with capital-intensive sectors.
He recommended the government introduce a gradual increase in wages and EPF contributions over an extended timeline to allow SMEs sufficient time to adapt.