KUSKOP, MoF, KESUMA To Address Minimum Wage Impact On MSMEs - Ewon
KUALA LUMPUR, Nov 11 (Bernama) -- The Ministry of Entrepreneur Development and Cooperatives (KUSKOP) is set to address the impact of minimum wages on micro, small, and medium enterprises (MSMEs) with the Ministry of Finance (MoF) and the Ministry of Human Resources (KESUMA).
Minister Datuk Ewon Benedick noted that KUSKOP will also outline additional initiatives to help reduce the implications of the minimum wage increase on these businesses.
“KUSKOP takes the impact of this wage increase on MSME-owned businesses seriously, recognising that a higher minimum wage will inevitably affect their cash flow and operational costs.
“In light of this, KUSKOP is ready to engage with MoF and KESUMA to develop specific initiatives that can lessen the effect of the wage increase on MSME entrepreneurs,” he said when winding up the Supply Bill 2025 debate at the policy level for the ministry in the Dewan Rakyat today.
Ewon also highlighted that the wage increase indirectly encourages MSMEs to explore digitalisation and automation in their operations, for long-term benefits.
“This adjustment may lead to reduced hiring to maintain cost-efficiency, with companies likely to favour contract hires over permanent positions,” he added.
Meanwhile, from January to September 2024, 10,515 entrepreneurs received group financing under the Teman Tekun Scheme for a total funding of RM81.3 million.
“This programme offers group-based financing that is simpler, faster, and more efficient, aimed at helping small vendors grow their businesses,” he explained.
As of Sept 30, 2024, 2,451 small vendors and traders received financing through the Micro-i Financing for Small Vendors and Traders (MPPK 2.0) scheme by Bank Rakyat, amounting to RM49.76 million.
“This scheme offers maximum financing of up to RM50,000 with zero interest charges,” he added.
-- BERNAMA