Mandatory salary disclosure could harm small businesses, industry warns

Malaysia's business community is expressing concern over proposals to make salary disclosure mandatory, with industry associations warning that stringent compliance requirements could disadvantage small and medium enterprises. The groups contend that smaller firms lack the administrative resources of larger corporations to implement and maintain such systems, potentially widening the competitive gap in the job market. Two major business associations have jointly called on policymakers to consider a voluntary approach to wage transparency, allowing companies to adopt the practice at their own pace and according to their operational capabilities. Proponents of the voluntary model argue it would enable smaller businesses to attract and retain talent without incurring substantial costs associated with mandatory compliance frameworks. The associations emphasize that a phased, incentive-based approach would encourage broader adoption of salary transparency while preserving the flexibility that smaller enterprises require to remain competitive in a challenging economic environment.