Opposition leader Hamzah Zainudin (PN-Larut) proposed a one-year postponement of the RM200 rise in minimum wage to allow the affected industries, particularly SMEs, to make the necessary adjustments and preparations.

“Labour costs are a significant factor in driving up operational expenses, in addition to utilities, raw materials, and transportation. That’s why this matter needs to be handled carefully,” he said when debating the 2025 budget in the Dewan Rakyat.

Last Friday, Prime Minister Anwar Ibrahim announced that the government would raise the minimum wage from RM1,500 to RM1,700 per month starting from Feb 1, 2025.

However, Anwar, who is also finance minister, said the new rate would only apply six months later, from Aug 1, for employers with fewer than five workers.

Hamzah said while the opposition agreed with the minimum wage hike, they were concerned that enforcing it too soon could force some SMEs out of business.

He also called for oil royalties to be given to Terengganu and Kelantan, saying it was unfair for people from the two states to rely on federal government allocations.

“If oil royalties for Terengganu and Kelantan were distributed according to the legal provisions of the country, their dependence on the federal government would be significantly reduced. Their tax revenue share would also see a substantial increase,” he said.