On a late September day, from George Town, a veteran Malaysian political voice asked the government to keep foreign workers out of any coming rise in the national minimum wage, and to lift a retirement-savings levy on them as well. The request rests on a familiar human tension: the wish to lift the wages of workers against the fear that small enterprises, the modest shopkeepers and workshops that carry much of the nation's economic life, will be pressed beyond what they can bear. The moment is tied to the budget, when a revision is expected, and it arrives at a time when the country is still d
Lim Guan Eng Urges Exclusion of Foreign Workers from Minimum Wage Hike, Repeal of Migrant EPF Levy
He did not dispute higher wages; his question was who should receive them.
Mark
What exactly is Lim Guan Eng asking for?
Mimi
Two things. Foreign workers should be excluded from any minimum wage increase, and the mandatory two per cent EPF contribution for them should be scrapped.
Mark
Why now?
Mimi
Budget 2027 is tabled on Oct 9, and a minimum wage revision is expected then. His statement lands just ahead of it.
Luke
Expected by whom? That's worth pinning down. The report says Lim stated the expectation, so it's his account, not an announcement.
Mark
Fair. And his argument for the exclusion?
Mimi
That foreign employees were hired under mutually agreed contracts, and that MSMEs, about 1.2 million of them, can't absorb more cost.
Luke
That 1.2 million figure is his, and the piece offers no data on how much of the cost burden actually comes from foreign workers' wages or the EPF levy.
Mark
So the claim that this would protect viability is an argument, not a finding.
Luke
Right. Nothing here shows the effect would be large, or what employers say, or what migrant workers think.
Mimi
And he supports higher wages in principle. His point is about who gets them.
Luke
Which the government hasn't addressed yet. Oct 9 is when we learn whether any of this is on the table.
Le Pouls
- A minimum wage increase looms over Budget 2027, due to be tabled on October 9, and local businesses are already feeling the pressure of its approach.
- Lim Guan Eng argues that foreign workers should be excluded from any wage rise, drawing a sharp line between local and migrant labour.
- He calls for the mandatory 2% EPF contribution for foreign workers to be scrapped at once, framing it as a cost that yields little for migrants.
- Roughly 1.2 million MSMEs stand at the centre of the dispute, and he urges consultation before any policy takes effect.
- The proposal is still only a position, and the government's answer on Oct 9 will decide whether the line is drawn.
On a late September day, from George Town, a veteran Malaysian political voice asked the government to keep foreign workers out of any coming rise in the national minimum wage, and to lift a retirement-savings levy on them as well. The request rests on a familiar human tension: the wish to lift the wages of workers against the fear that small enterprises, the modest shopkeepers and workshops that carry much of the nation's economic life, will be pressed beyond what they can bear. The moment is tied to the budget, when a revision is expected, and it arrives at a time when the country is still deciding how the fruits of growth should be shared between those who labour and those who employ.
On September 29, from George Town, DAP chairman Lim Guan Eng made a statement asking the government to leave foreign workers out of any coming increase in Malaysia's minimum wage. His reasoning was about cost. He argued that exempting foreign workers would shield local businesses, especially micro, small and medium enterprises, from rising operating expenses.
The timing is tied to the budget. Lim said Prime Minister Datuk Seri Anwar Ibrahim is expected to announce a minimum wage revision when Budget 2027 is tabled on October 9. He did not dispute the case for higher pay, and acknowledged that wages have lagged behind productivity and corporate profits. But he said the prospect of an increase has unsettled businesses already strained by fierce competition, rising compliance costs and taxes, and cheaper goods from overseas.
He described MSMEs as the backbone of the domestic economy and urged that they be consulted before any change takes effect. On who should benefit, he argued that foreign employees were hired under contracts both sides had agreed to, so the increase should apply only to Malaysian workers. He also renewed his call for the mandatory 2% EPF contribution for foreign workers to be abolished immediately, calling it a burden on employers that gives migrant workers little real benefit.
Together, he said, these steps would ease cost pressures and help protect the viability of about 1.2 million MSMEs. The statement is a proposal rather than a policy. What the government actually decides will become clear when Budget 2027 is tabled on October 9.
On Sept 29, from George Town, DAP chairman Lim Guan Eng issued a statement asking the government to leave foreign workers out of any coming rise in Malaysia's minimum wage. His reasoning was about cost: he argued the exclusion would shield local businesses, micro, small and medium enterprises in particular, from higher operating expenses.
The timing is tied to the budget. Lim said Prime Minister Datuk Seri Anwar Ibrahim is expected to announce a minimum wage revision when Budget 2027 is tabled on Oct 9. According to Lim, that expectation rests on the government's assessment that wages have not kept pace with gains in worker productivity and corporate profits.
Lim did not dispute the case for higher pay. He acknowledged the rationale, but said the prospect of an increase has unsettled local businesses that are already under strain. He listed the pressures: intense competition, higher compliance costs and taxes, and price competition from overseas producers.
MSMEs were at the center of his argument. He described them as the backbone of the domestic economy and said they are contending with a sluggish economic environment. In his view they should be consulted before any policy change takes effect.
On the substance of who should benefit, Lim said an upward revision should apply only to Malaysian workers. His stated reason was that foreign employees were hired under employment contracts both sides had agreed to, and so should not receive the increase.
He also renewed a call he has made before: that the mandatory two per cent Employees Provident Fund contribution for foreign workers be abolished immediately. Lim contended that the requirement places an unnecessary burden on employers while giving migrant workers no meaningful benefit.
Together, he said, exempting foreign workers from the wage increase and scrapping the EPF requirement would ease cost pressures and help safeguard the viability of roughly 1.2 million MSMEs across the country. He urged the government to put the interests of domestic enterprises first and to make sure wage-raising policies do not inadvertently weaken the competitiveness of Malaysian businesses.
The statement is a proposal and a position, not a policy. What the government will actually do on the minimum wage, and whether foreign workers are treated differently, should become clear on Oct 9 when Budget 2027 is tabled.
Citations marquantes
Foreign workers should not benefit from a minimum wage increase because they were hired under mutually agreed employment contracts.— Lim Guan Eng, DAP chairman (paraphrased)
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