The government of Malaysia has decided to temporarily exempt micro, small and medium-sized enterprises (MSMEs) from additional minimum wage increases. This decision, welcomed by the SME Association of Malaysia (SME Malaysia), is intended to alleviate financial pressure on businesses. SME Malaysia stated the exemption will provide “breathing room” for MSMEs currently navigating economic challenges. The move aims to support the sustainability of smaller businesses operating in Kuala Lumpur and across the country. This temporary measure seeks to balance the welfare of workers with the operational needs of MSMEs. The exemption is expected to help these businesses manage costs and maintain employment levels during this period.