Minimum wage hike should apply only to Malaysian workers, says Guan Eng

A prominent opposition legislator has urged the government to limit any minimum wage increases to Malaysian citizens, warning that extending such benefits to foreign workers would intensify cost pressures on employers.

Guan Eng, a senior Democratic Action Party figure, said targeted wage policy would help protect local workers while maintaining business competitiveness in the region. He argued that businesses, particularly small and medium enterprises, are already operating under tight margins and cannot absorb additional labour costs across their entire workforce.

The call comes as Malaysia continues to grapple with wage competitiveness and worker welfare issues. The country employs significant numbers of migrant workers across manufacturing, construction, plantation, and domestic service sectors, making employment cost policy a sensitive economic matter.

Guan Eng's position reflects broader political tensions over how Malaysia should balance worker protections with business sustainability. The government has previously indicated consideration of wage policy adjustments, though no formal minimum wage structure has been universally implemented across all sectors.

Analysts note that any minimum wage policy adjustment will require careful calibration to avoid pushing labour-intensive industries towards greater automation or relocation to lower-cost regional competitors.