Govt Urged To Implement More Comprehensive Plan For Business Resilience

KUALA LUMPUR, Oct 23 (Bernama) -- The government should implement a more comprehensive plan for businesses to bolster their resilience and remain competitive.

Tan Sri Muhyiddin Yassin (PN-Pagoh) said that among the potential measures is the implementation of the wage subsidy programme for small companies to ease their burden due to the increase in the company's operating costs and, at the same time, prevent them from laying off workers to reduce operating costs. 

“This programme was implemented by the Perikatan Nasional government under the Penjana programme during the COVID-19 pandemic,” he said when debating the Supply Bill 2025 at the policy level in the Dewan Rakyat today. 

Last Friday, during the tabling of Budget 2025, Prime Minister Datuk Seri Anwar Ibrahim announced that the minimum wage rate will be increased to RM1,700 a month from RM1,500 per month with effect from Feb 1 next year. 

As such, Muhyiddin called upon the government to thoroughly evaluate the problems faced by small companies that are unable to meet the rise in operating costs due to the increase in wage costs.

“The reason is that the chain effect of the minimum wage increase would be significant.

“It is not just the increase in wage costs that the company has to bear, but also the cost of operations, logistics, inventory and others,” he said. 

Muhyiddin said the recovery plan for micro, small and medium enterprises (MSME) should be carried out with a special focus given to bumiputera MSMEs, especially those adversely affected by the COVID-19 pandemic. 

“The existing agencies established to assist bumiputera entrepreneurs, including banking institutions, must be more active in providing financial assistance to entrepreneurs,” he added. 

-- BERNAMA