29/10/2026

THURSDAY | OCT 29, 2026

2

‘Employers cannot sidestep graduate minimum wage’

Surge in exports to US PETALING JAYA: Malaysia’s exports to the United States surged 69.1% to RM282.07 billion in the first nine months of 2026, fuelled by semiconductor demand linked to artificial intelligence (AI) and data centre expansion, even as US tariffs hit rubber gloves, furniture and medical devices. The Investment, Trade and Industry Ministry (Miti) said bilateral trade rose 39.6% to RM378.70 billion between January and September, with electrical and electronics (E&E) products accounting for the bulk of Malaysia’s exports to the US. “The strong export performance was driven mainly by a surge in demand for E&E products, particularly semiconductors, following the rapid development of AI technology and data centres,” it said in a written reply to the Dewan Rakyat. Miti was responding to Amirudin Shari (Gombak-PH), who asked about the impact of US tariffs on Malaysian industries in 2026 and the alternative markets explored by the government to help local micro, small and medium enterprises (MSME) export their products. It added that Malaysia’s strategic advantage in securing exemptions from additional US tariffs on most semiconductor and E&E products had also supported export growth. It also said the E&E sector accounted for about 64.2% of Malaysia’s total exports to the US, with semiconductors making up 44% of E&E exports. However, Miti said several other industries recorded declines in shipments to the US amid tariff pressures, adding that rubber glove exports fell 1.6% to RM5 billion, furniture exports dropped 19.2% to RM3.77 billion, while medical device exports declined 12% to RM8.74 billion. It said the sectors were examined because the US accounted for between 32% and 47% of Malaysia’s total exports of the respective products, which were subject to additional tariffs and did not qualify for tariff exemptions. “This shows that although overall exports to the US continued to record positive growth, several key Malaysian industries faced pressure to absorb US tariff costs or offer discounts to buyers to remain competitive, sustain exports and maintain access to the US market.” Miti said to reduce the risks, the government is diversifying export destinations through free trade agreements and exploring non-traditional markets in the Middle East, Africa, Latin America and South Asia. It added that the strategy has yielded encouraging results, with exports of products affected by US tariffs recording growth in several alternative markets between January and September. It said rubber glove exports rose 712% to Oman, 84.6% to Brazil, 80.8% to Sweden, 48.1% to Denmark, 43.7% to the Netherlands, 34% to Estonia and 18.4% to Canada. It also said medical device exports increased 206% to South Korea, 74.9% to Singapore, 65% to Sweden, 59.1% to Brazil, 43.9% to Turkiye, 26.6% to Canada and 5% to the United Kingdom. Miti said furniture exports also recorded strong growth in alternative markets, surging 586.1% to Guyana, 140% to Taiwan, 135.4% to Switzerland, 99% to Vietnam and 68.3% to New Zealand. It added that the government was also supporting local industries, particularly MSME, through grants, targeted incentives and participation in trade and investment promotion missions to strengthen their export capabilities. “Diversifying markets and reducing excessive dependence on any single market is the best approach to minimise exposure to external shocks and strengthen the resilience of the country’s trade.” Miti said it would continue monitoring US trade policy developments and taking proactive measures to safeguard Malaysian exporters, maintain market access, diversify export destinations and strengthen the competitiveness of domestic industries. – By Qirana Nabilla Mohd Rashidi

Syerleena Abdul Rashid, Khairul Firdaus said the amendments were necessary because the existing legislation did not specifically provide for mandatory minimum starting salaries based on educational attainment. He said the government was also targeting a reduction in skills-related underemployment from 32.2% in 2024 to 30% by 2030 under the 13th Malaysia Plan. He added that the rate edged down from 32.4% in 2023, highlighting the persistent mismatch between graduates’ qualifications and the jobs available to them. He also said the government was targeting higher wages of RM3,500 and an increase in employees’ compensation to 40% of gross domestic product by 2030. On efforts to align training with industry needs, Khairul Firdaus said the Skills Development Department had established 2,028 active National Occupational Skills Standards to guide training programmes in line with technological developments and labour market demands. He added that the department also conducts industry-based training through 1,391 centres under the Akademi Dalam Industri programme.

o Govt amending law to prevent reclassification of positions to justify lower salaries, says deputy minister

Ű BY HARITH KAMAL newsdesk@thesundaily.com

Rakyat yesterday. He was responding to Kuantan MP Wan Razali Wan Nor, who asked whether employers could circumvent the proposed wage requirements by downgrading positions traditionally requiring degrees to diploma or Sijil Pelajaran Malaysia (SPM) level.

AT THE DEWAN RAKYAT

KUALA LUMPUR: Employers will not be allowed to sidestep the proposed RM2,500 minimum starting salary for graduates by downgrading job requirements, with planned

Khairul Firdaus said the National Wages Consultative Council was reviewing its starting salary guidelines based on the Malaysia Standard Classification of Occupations to establish a clearer wage structure that reflects workers’ qualifications and skills. He added that the revised guidelines are expected to be introduced alongside a new minimum wage order in June 2027, which will include a proposed monthly starting salary of RM2,500 for graduates and semi-skilled workers, as announced under Budget 2027. Earlier, in response to Bukit Bendera MP

amendments to the National Wages Consultative Council Act 2011 set to make educational qualifications a factor in determining mandatory starting pay. Human Resources Deputy Minister Datuk Khairul Firdaus Akbar Khan said the amendments would close a potential loophole by preventing employers from arbitrarily reclassifying positions to justify lower salaries. “Once this element is incorporated, employers cannot simply or arbitrarily disregard employees’ qualifications when determining their positions,” he told the Dewan

Khairul Firdaus said the National Wages

Consultative Council was reviewing its starting salary

guidelines based on the Malaysia Standard Classification of Occupations to establish a

clearer wage structure that reflects workers’ qualifications and skills. – AMIRUL SYAFIQ/THESUN Proposed house arrest Bill in final stages of review

PETALING JAYA: The proposed house arrest Bill is in the final stages of review by the Home Ministry and the Attorney-General’s Chambers, with its current scope focused on remand prisoners, Home Minister Datuk Seri Saifuddin Nasution Ismail said. He said the ministry and the Prisons Department were drafting the Bill as there was currently no specific legal provision allowing prisoners to serve their sentences at home under a house arrest mechanism. “In this regard, the Home Ministry is drafting a Bill on house arrest, which focuses on remand prisoners and is currently in the final stages of review by the ministry and the Attorney-General’s Chambers.” Saifuddin was speaking in a written reply to Ngeh Koo Ham (Beruas-PH), who asked him to specify the legal provisions under which a Ű BY QIRANA NABILLA MOHD RASHIDI newsdesk@thesundaily.com

until Aug 23, 2028, subject to payment of a RM50 million fine. The Prime Minister’s Department said the decision was finalised at the 64th meeting of the Pardons Board for the Federal Territories of Kuala Lumpur, Labuan and Putrajaya. Najib was convicted in 2020 in the SRC International corruption case, one of several major trials linked to the 1MDB scandal. He began serving his original 12-year prison sentence at Kajang Prison in August 2022 after the Federal Court dismissed his final appeal. His sentence was subsequently halved to six years and his original RM210 million fine reduced to RM50 million following a review by the Federal Territories Pardons Board in 2024. Saifuddin said Najib remained at Kajang Prison as he had yet to pay the RM50 million fine, one of the conditions attached to the house arrest arrangement.

prisoner could be allowed to serve a sentence under house arrest at their residence. However, He said prisoners could be considered for a pardon, sentence reduction or commutation, or a reprieve from the execution of their sentences under Article 42 of the Federal Constitution. “Such consideration is subject to the jurisdiction of the Pardons Board and the consent of the Yang di-Pertuan Agong, the respective Rulers or the Yang di-Pertua Negeri, as applicable.” Saifuddin said a conditional pardon granted under the royal prerogative of mercy, on the advice of the Pardons Board, was distinct from house arrest provided for under specific legislation. Last month, His Majesty Sultan Ibrahim, the King of Malaysia, granted former prime minister Datuk Seri Najib Abdul Razak a conditional pardon allowing him to serve the remainder of his sentence under house arrest