Recently, the Malaysian business community has expressed strong concerns and worries about a series of new policies that the government is about to implement, particularly regarding adjustments to the minimum wage standard, reforms to the RON95 gasoline subsidy mechanism, and measures requiring employers to contribute to the housing provident fund for foreign workers. The continuous introduction of these policies is expected to bring heavy financial pressure to Malaysian enterprises, especially micro and small and medium-sized enterprises, and even threaten their survival and development.

Chen Qixiong, the President of the Malaysian Small and Medium Enterprises Association, stated in a public statement that small and medium-sized enterprises, as the cornerstone of the Malaysian economy, account for over 97% of the total number of businesses and provide employment opportunities for millions of people. However, facing the upcoming policy adjustments, small and medium-sized enterprises generally feel powerless. Chen Qixiong pointed out that due to relatively small profit margins, small and medium-sized enterprises have limited ability to absorb additional costs. Especially in the post pandemic economic recovery stage, many enterprises are still in a fragile state. If they do not receive sufficient support, these new policy adjustments will have a serious impact on their survival.

The President of the Malaysian Manufacturers' Association, Su Tianlai, also expressed disappointment with the government's decision. He emphasized that the government did not have sufficient communication and discussion with the industry before mandating employers to contribute to the housing provident fund for foreign workers. Su Tianlai calculated that based on approximately 2.5 million foreign workers nationwide, a minimum wage of RM1700 per month, and a 13% provident fund contribution rate, once the policy is implemented, employers will need to bear an additional cost of at least RM6.6 billion per year. He called on the government to postpone the implementation of this policy for at least two years, so that all parties can have a comprehensive discussion and leave room for companies to adjust their financial operations.

The President of the Malaysian Construction Association, Wei Xianqin, also expressed concerns about the new policy. He pointed out that the increase in the minimum wage standard and the mandatory payment of provident fund for foreign workers will result in an additional monthly cost of over RM110 million for construction workers. This is undoubtedly adding insult to injury for the construction industry, which is already facing rising material costs and labor shortages. Wei Xianqin called on the government to fully consider the actual situation of the construction industry and carefully formulate relevant policies.

The Malaysian Chinese Chamber of Commerce also expressed concerns about the new measures in a statement. Mr. Zhong pointed out that if the government implements these new measures simultaneously, companies that cannot absorb additional costs may be forced to pass on the costs to consumers to maintain profitability. This will not only damage the competitiveness of enterprises, but may also have adverse effects on the overall economy. Mr. Zhong hopes that the government can engage in sufficient consultations with the business and private sectors to reconsider the implementation of this measure.

alsoMany chambers of commerce and business organizationsalsoThey all expressed that they did not have the opportunity to discuss with the government before the policy was introduced, which made them feel caught off guard by the sudden implementation of the policy. They call on the government to formulate policies more openly and transparently, fully considering the actual situation and needs of enterprises, to ensure the rationality and feasibility of policies.