Lok Sabha: Government to keep prices under control following minimum wage increases

KUALA LUMPUR, 13 Oct: The Government committed to keeping the prices of essential goods under control to address concerns about rising living costs following implementation of minimum wage RM2,000 per month from June 2027.

Minister of Economy, Akmal Nasrullah Mohd Nasir said the measure will be implemented through stricter enforcement under the Price Control and Anti-Counterfeiting Act.

"The country's inflation rate is still under control, at 1.8 percent in 2024 before falling to 1.4 percent in 2025.

"By 2026, the inflation rate is recorded at 1.7 percent in the first quarter and 1.9 percent in the second quarter", he said in the Lok Sabha today.

He answered Aminolhuda Hassan's (PH-Sri Gading) questions on the government's measures to address the risk of job loss, rising commodity prices and increasing operating costs for small enterprises following minimum wage increases.

Meanwhile, Akmal Nasrullah said that the implementation of the Minimum Wage Order will be monitored by Peninsular Malaysian Labor Department, Sabah Labor Department and Sarawak Labor Department in accordance with relevant legal provisions.

He said that employees could file a complaint if employers failed to comply with the minimum wage, while those who refused could face legal action.

He said that employees who lost their jobs due to the restructuring of the company following the minimum wage adjustment and qualification requirements can apply for benefits through the Employment Insurance System (SIP).

"The benefits include a Job Seeker Grant that helps disadvantaged workers meet their livelihoods for up to six months", he said.

For the record, Prime Minister, Datuk Seri Anwar Ibrahim, when presenting Budget 2027 on October 9, announced an increase in minimum wage rate from RM1,700 to RM2,000 per month effective June 2027. - TVS