Kuala Lumpur, 13 October 2026 – Malaysia will make Employment Insurance System benefits available to workers retrenched during company restructuring linked to the planned RM2,000 minimum wage, combining wage reform with temporary income protection. Economy Minister Akmal Nasrullah Mohd Nasir said eligible workers could receive a job-search allowance for up to six months.
The minimum wage is set to rise from RM1,700 under Budget 2027 and is expected to benefit more than four million workers. The increase can support household income and consumption, but it also raises payroll costs for employers already managing rent, financing, materials and technology spending. The policy therefore includes targeted relief rather than applying the same burden to every business.
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