KUSKOP To Provide Continuous Assistance For SMEs To Implement New Minimum Wage

KUALA LUMPUR, 23 Jan (Bernama) -- The Ministry of Entrepreneur and Cooperatives Development (KUSKOP) is providing continuous support to help small and medium enterprises (SMEs) comply with the new minimum wage implementation set to take effect next month.

Deputy Minister Datuk Seri R. Ramanan said that the ministry's initiatives include financial management training to help SMEs manage costs effectively and achieve savings, ultimately assisting them in achieving their company's goals.

The increase in the minimum wage is a step towards boosting the Gross Domestic Product and can enable workers to earn a salary that improves their daily lives

"The readiness of SMEs to comply is currently moderate, but KUSKOP is offering significant support to facilitate this transition," he told reporters at the Malaysian SME Resilience & Growth 2025 Conference.

The minimum wage increase from RM1,500 to RM1,700 per month effective Feb 1 2025, was announced by Prime Minister Datuk Seri Anwar Ibrahim during the presentation of the 2025 Budget. However, employers with fewer than five employees have been granted a six-month deferment until Aug 1, 2025.

According to Ramanan, SMEs play a crucial role in driving Malaysia's economic growth, with the number of SMEs nearing 1.1 million. The government has placed significant emphasis on supporting their development.

"Almost RM40 billion has been announced in the 2025 Budget to support the development and growth of SMEs, as well as to help them explore international markets," he explained.

Ramanan also highlighted opportunities for SMEs to expand into the Uzbekistan market, a predominantly Muslim country with around 400,000 SMEs, which could serve as potential partners.

"If we can market our halal products, such as cosmetics, food, and tourism, we have the potential to enter that market. It is a huge opportunity," he said.

To capitalise on the international market, Ramanan urged SMEs to meet stringent global standards on sustainability, digital trade barriers, and corporate governance to remain competitive.

"Navigating these complexities is crucial for maintaining business resilience and achieving growth in today’s interconnected world.

"The need for businesses to adapt is underscored by the rising influence of environmental, social, and governance factors, which are becoming integral to business operations worldwide," he added.

-- BERNAMA