KUCHING, Oct 11 2026: Parti Bumi Kenyalang (PBK) president Voon Lee Shan has said the federal government's proposal to increase the minimum wage from RM1,700 to RM2,000 can have negative impact on the quality of life of the workers.
Caption: PBK president Voon Lee Shan says it is remembered that not every business is a large corporation with strong profitsHe said it will lead to small traders, family businesses, hawkers, contractors, and small manufacturers to operate on thin margins.
He said a sudden increase in labour costs may push some of them to close, reduce employment, or avoid hiring new workers, hurting the very people the policy is meant to help.
"We must remember that not every business is a large corporation with strong profits," he said when reacting to an announcement by Prime Minister Anwar Ibrahim his the federal 2027 Budget speech in Parliament last Friday.
He said he does not mean that the workers should remain poor, adding that Sarawakians deserve fair wages, decent work, and a better standard of living.
"But wage policy must be balanced. It must consider productivity, business capacity, regional differences, and the real cost of living," Voon said.
He stressed the way forward is not simply to force wages upward, saying: "We must help businesses grow, improve workers’ skills, raise productivity, reduce unnecessary costs, and ensure that economic growth reaches ordinary families.
"When businesses grow, they can pay better wages without cutting jobs or passing every cost to consumers.
"A strong economy is not built by making it harder for businesses to survive. It is built by creating jobs, supporting enterprise, and ensuring that both workers and employers can move forward together," Voon said.
When tabling the federal 2027 Budget, Anwar said the increase in the minimum wage from RM1,700 to RM2,000 will take effect June 2027.
He said micro, small and medium enterprises (MSMEs) with annual revenues of less than RM50 million would be exempted from the increase to give them time to adapt their business models.
He added the gap between workers’ productivity and wages must be narrowed, as the cost-of-living burden stems from incomes failing to keep pace with rising prices.
Anwar said more than four million workers will be covered by the new minimum wage rate.
He said the government will also introduce a minimum monthly salary of RM2,500 for semi-skilled workers and graduates as a starting point, as part of reforms to the country’s wage framework.




