IKEA Malaysia has welcomed the increase in the national minimum wage to RM2,000 from RM1,700 from June 2027, while highlighting the need for businesses to balance higher wages with rising operating costs and affordable prices for consumers.
IKEA Malaysia country retail director Takeshi Murai said the wage increase would support workers’ livelihoods, while the government’s exemption for eligible micro, small and medium enterprises (MSMEs) recognised the different operating pressures faced by businesses.
“Sustainable wage growth requires businesses to balance their responsibility towards employees with rising operating costs and the need to maintain affordable prices for consumers,” he said in a statement on Budget 2027.
Murai also welcomed the increase in allocations for Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (SARA) to RM16 billion from RM15 billion in 2026, alongside higher individual tax relief and reductions in selected personal income tax rates.
The tax measures are expected to provide up to RM1,600 in additional disposable income to about five million taxpayers, helping households manage living costs.
He said affordability remained central to IKEA’s business as Malaysian households became more cautious with their spending, with the company focusing on practical home solutions without compromising on quality, functionality or sustainability.
IKEA Malaysia also welcomed the RM20 billion housing financing guarantee under Syarikat Jaminan Kredit Perumahan and proposed stamp-duty exemptions for eligible first-home purchases, as well as the extension of green technology tax incentives until 2030.
The government’s NUR MADANI rebates of up to RM200 for energy-efficient air conditioners and refrigerators would also make sustainable household choices more accessible, Murai said.
