Accra:Human Resources Minister Datuk Seri R. Ramanan has announced that the new RM2,000 minimum wage, which will be implemented in 2027, was determined after a comprehensive evaluation of various aspects, such as its impact on inflation and the prices of goods.

According to BERNAMA News Agency, the National Wages Consultative Council (NWCC), led by Tan Sri Zainal Rahim Seman, conducted an in-depth analysis before presenting its findings to Prime Minister Datuk Seri Anwar Ibrahim for final approval. Ramanan emphasized that the decision was made cautiously, avoiding the higher range of RM3,000 to RM3,500 proposed by some experts, to mitigate potential inflationary effects.

Ramanan also highlighted that the policy would be introduced in phases to allow businesses, particularly micro, small, and medium enterprises (MSMEs), sufficient time to adapt. He stressed the importance of not overwhelming these businesses to prevent inflation from rising.

In response to inquiries about feedback on the new wage policy, Ramanan acknowledged that the Human Resources Ministry had received diverse opinions but assured that the plan was devised with careful consideration to ensure economic stability.

Previously, Prime Minister Anwar announced the increase from RM1,700 to RM2,000, benefiting over four million workers. He also mentioned that MSMEs with sales revenue below RM50 million would be exempt initially to enable business model adjustments. Additionally, the government plans to reform the income framework by setting a starting minimum wage of RM2,500 for semi-skilled workers and graduates.