KUALA LUMPUR, Nov 11 — The Entrepreneur and Cooperatives Development Ministry (Kuskop) is set to address the impact of minimum wages on micro, small, and medium enterprises (MSMEs) with the Finance Ministry (MOF) and the Human Resources Ministry (MOHR).
Entrepreneur and Cooperatives Development Minister Datuk Ewon Benedick noted that Kuskop will outline more initiatives to reduce the implications of the minimum wage rise 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 the MOF and MOHR to develop specific initiatives that can lessen the effect of the wage increase on MSME owners,” he said when winding up the Supply Bill 2025 debate for his 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 September 30, 2,451 small vendors and traders received financing through Micro-i Financing for Small Vendors and Traders 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
