The Federation of Malaysian Manufacturing (FMM) has called for clear implementation guidelines on the temporary minimum wage relief for micro, small and medium enterprises (MSMEs), alongside stronger productivity support to help businesses sustain higher wages over time.
FMM President Jacob Lee said manufacturers need certainty over who qualifies for the exemption, how long it will last and whether the measure is a temporary deferment or subject to future review.
Lee explained that clearer rules would help companies plan payroll commitments, hiring and investment, while also giving workers certainty over their wage entitlements.
He stressed that the exemption from any future increase should not be confused with existing minimum wage obligations, and should not be interpreted as allowing employers to reduce current wages or ignore the prevailing statutory floor.
However, Lee said the relief recognises the pressure facing smaller businesses, particularly manufacturers with limited ability to pass higher costs on to customers.
At the same time, Lee said FMM supports the use of the Progressive Wage Policy to help businesses raise pay in tandem with productivity improvements.
He called for wage subsidies to be made more accessible to eligible manufacturing MSMEs through simpler applications, faster disbursement and clearer guidance on qualifying training and wage progression.
FMM also wants the wage support to be paired with assistance for automation, digitalisation, skills upgrading and improvements in production processes.
The aim, Lee said, should be to help smaller manufacturers raise output and value added so wage growth can continue even after subsidy support ends.
