KUALA LUMPUR – The Malaysian Indian Restaurant Owners Association (Primas) has called on the government to clarify how long eligible micro, small and medium enterprises (MSMEs) will be exempt from the RM2,000 minimum wage requirement, while seeking targeted cost relief and faster foreign worker approvals for restaurant operators.
Primas president Datuk Govindasamy Jayabalan welcomed Budget 2027, thanking Prime Minister Datuk Seri Anwar Ibrahim for addressing the concerns of MSMEs and restaurant businesses.
However, he cautioned that the measures offered only temporary breathing space, with operators still contending with escalating operating expenses, rising rental rates and weaker sales.
“We welcome Budget 2027 and thank PMX Dato’ Seri Anwar Ibrahim for listening to MSMEs and restaurant operators,” he told Scoop.
Govindasamy described the exemption for MSMEs with annual sales below RM50 million from the RM2,000 minimum wage requirement, the reduction in the MSME tax rate to 14% and RM57 billion in financing facilities as positive steps for the industry.
He also said additional disposable income among consumers could help stimulate spending and support restaurant businesses.
“Good news for restaurant sector – MSMEs below RM50m sales exempted from RM2,000 minimum wage, MSME tax cut to 14%, RM57b financing, and rakyat getting RM1,600 extra to spend. This helps us to breathe,” he said.
Despite these measures, Govindasamy said restaurant operators were still struggling with operating costs that had risen by between 30% and 40%, while rental rates had doubled for some businesses.
He also pointed to a 4.6% decline in sales in the first quarter of 2026, saying many operators remained under financial pressure despite the government’s support measures.
To provide more meaningful assistance, he outlined three priorities for the government.
First, he called for a clear timeline for the minimum wage exemption, saying eligible businesses needed certainty to plan staffing expenses and manage their operations.
Second, he urged the government to introduce targeted cost reductions for the food and beverage sector. These should include a dedicated electricity tariff for F&B businesses, lower import duties on food items and a reduction in the foreign worker levy to RM1,000.
Third, he called for foreign worker applications to be processed and approved within 14 days, arguing that faster approvals would help restaurants address labour shortages and sustain their operations.
Govindasamy said the proposed measures were necessary to ease the burden on operators facing mounting expenses and declining sales.
He added that PRIMAS was willing to work with the government to keep businesses viable while ensuring food remained affordable for consumers.
“We are ready to work with Government to keep food prices affordable for rakyat,” he said.
Under Budget 2027, Anwar announced that the national minimum wage would increase from RM1,700 to RM2,000 a month from June 2027, a move expected to benefit more than four million workers.
However, MSMEs with annual sales revenue below RM50 million will initially be exempt from the requirement, giving them time to adjust their business models and prepare for the higher wage threshold. – October 13, 2026