The Malaysian Associated Indian Chambers of Commerce and Industry (MAICCI) has expressed its support for the Cabinet’s decision to temporarily exempt micro, small, and medium enterprises (MSMEs) from the new minimum wage increase.
In a statement, MAICCI welcomed the efforts of Minister of Entrepreneur and Cooperative Development YB Steven Sim Chee Keon, who raised concerns over the ability of smaller businesses to manage higher wage costs. The association referred to the Cabinet decision announced in his media statement dated 30th September 2026.
MAICCI said the decision would give local entrepreneurs more room to manage rising operating costs, strengthen their finances and retain employees while continuing to grow their businesses.
Balancing Business Costs and Workers’ Welfare
MAICCI stressed that supporting businesses and improving workers’ welfare should go hand in hand. It believes financially stable businesses are better placed to provide secure jobs, improve employees’ skills and offer better wages.
The association also supports the government’s plan to help increase MSME workers’ salaries through wage subsidies under the Progressive Wage Policy. The approach aims to link wage increases with better productivity, allowing businesses to improve their performance while raising workers’ incomes.
MAICCI Calls for Clear Guidelines and Easier Applications
While welcoming the decision, MAICCI has called for clear guidelines to help business owners understand the support available to them.
The association proposed that the government provide detailed information on MSME eligibility, the scope of the temporary exemption and how businesses can access wage subsidies.
It also urged the government to introduce a simple application process and provide clear explanations so that entrepreneurs can make full use of the assistance. MAICCI said it is prepared to work with the Ministry of Entrepreneur and Cooperative Development and other relevant agencies to share information with its members and provide feedback from the business community.
The association also expressed its appreciation to Prime Minister Datuk Seri Anwar Ibrahim for his support and concern for the future of MSMEs.
MAICCI hopes the approach will help smaller businesses remain competitive, protect employment opportunities and improve workers’ living standards.
The exemption concerns the proposed new increase, rather than the existing minimum wage. The government has yet to finalize the new wage rate and its implementation details.
