Calling for a more balanced and consultative policy framework, MEF said future measures must support workers’ welfare and business sustainability.

“For 2026, MEF hopes to see policies that enhance productivity, improve ease of doing business, rationalise compliance requirements and provide stronger financial and transitional support for MSMEs,” its president, Syed Hussain Syed Husman, said in a statement today.

Syed Hussain said wage policies, social security measures and labour reforms must be aligned with prevailing economic conditions to ensure long-term job creation and sustain investor confidence.

“MEF hopes for a consultative, practical and sustainable regulatory approach,” he said.

According to Syed Hussain, 2025 had been challenging for employers across all sectors, with the cumulative impact of rising costs and regulatory obligations significantly straining business sustainability even as employers remain committed to sustaining businesses and preserving jobs.

He said employers have had to absorb higher wage-related costs, including minimum wage adjustments, additional statutory benefits and rising payroll-related expenses, at a time when business margins remain tight.

“The pace of regulatory expansion has added to the cost of compliance and administrative burden on employers.

“There is an urgent need for better policy coordination, adequate transition periods and clearer guidelines to ensure compliance does not unintentionally stifle business growth,” he said.

He also reaffirmed MEF’s commitment to working closely with the government and other stakeholders to strengthen Malaysia’s competitiveness and ensure economic growth remains inclusive and sustainable.