BT Insights: How do businesses absorb the rising cost of labour, and does 2027 budget incentives help? [WATCH]

KUALA LUMPUR: The 2027 Budget came with good news for many entry-level workers, as starting the middle of next year, minimum wage will be RM2,000 a month.

However, for many businesses, the jump in minimum wage is another layer of increased costs for them to do business. The crisis in the Middle East that blocked most access to the Strait of Hormuz has caused prices of raw materials to soar over the last 12 months.

How can businesses cope with another rise in costs? Will this push automation adoptions among them? But while big companies and major corporations can afford to invest in automations and AI, what about the smaller ones with thin margins?

The RM2,000 minimum wage is exempted on micro, small and medium enterprises, but economists agree that even them will feel the impact in the form of greater competitions for workers and talents. In short; you want talent, you have to pay top dollars.

Will all these lead to runaway inflations? Watch the latest episode of BT Insights on NST Online's YouTube channel.