Politics · Malaysia Bureau
DAP lawmaker warns of SME risks from foreign worker wage increases
Lim Guan Eng has urged the government to exercise caution when implementing wage hikes for foreign workers, citing potential contract complications for small and medium enterprises. The Bagan MP raised the concerns as Budget 2027 discussions continue in Parliament.
LSN Malaysia ·
KUALA LUMPUR — Lim Guan Eng reiterated calls for the government to carefully assess the implications of raising foreign worker wages, warning that sudden increases could create contractual difficulties for Malaysia's small and medium-sized enterprises.
The DAP lawmaker for Bagan said policymakers should consider the knock-on effects of wage hikes on SME contracts and operational costs. He cautioned that without proper transition mechanisms or exemptions, businesses relying on foreign labour could face financial strain and compliance challenges.
Lim's comments come as Parliament reviews Budget 2027 proposals. The government has signalled intentions to improve working conditions and fair wages across sectors, including those employing migrant workers, as part of broader economic and social policies.
While acknowledging the importance of worker welfare, Lim emphasised that policy implementation must balance worker protection with business sustainability. He called for consultations with industry bodies and SME associations to ensure any wage adjustments do not destabilise the smaller business segment of the economy.
The government has not announced specific wage increase proposals for foreign workers in the current budget cycle, but the issue remains a focal point of parliamentary debate as lawmakers weigh competing economic and labour policy priorities.