Guan Eng wants foreign workers excluded from minimum wage hike

GEORGE TOWN: DAP adviser Lim Guan Eng wants the government to exclude foreign workers from any increase in the minimum wage.

In a statement on Facebook, Lim said the proposed revision, expected to be announced when Budget 2027 is tabled on Oct 9, should take into account the pressures faced by micro, small and medium enterprises (MSMEs).

Prime Minister Datuk Seri Anwar Ibrahim had said the current RM1,700 minimum wage was expected to be raised, with details to be announced when 2027 Budget is tabled.

Lim said any increase should not apply to foreign workers, arguing that local employers had hired them based on previously agreed employment contracts.

"Any increase in the minimum wage must not benefit foreign workers, in order to defend and protect the interests of Malaysians and Malaysian businesses," he said.

Lim also wants the mandatory 2 per cent Employees Provident Fund (EPF) employer contribution for non-Malaysian workers to be scrapped, saying the measure placed an additional burden on local employers and MSMEs.

Under current EPF rules, non-Malaysian citizen employees and their employers each contribute 2 per cent of monthly wages. The requirement took effect from wages for October 2025, with domestic workers excluded.

Lim said the government should engage with businesses, particularly MSMEs, before implementing any increase amid concerns over rising operating and compliance costs.

His call comes as the government considers a possible increase in the minimum wage.

Economy Minister Akmal Nasrullah Mohd Nasir had said the government was considering the impact on employers, particularly MSMEs, and the need to balance workers' welfare with business sustainability.

Anwar had said wage growth had lagged behind productivity growth in Malaysia and that the government would introduce measures to ensure fairer wages in 2027 Budget.