KESUMA Targets More Job Opportunities for Malaysians and Better Worker Protection

The Ministry of Human Resources (KESUMA) is strengthening efforts to prioritise local employment opportunities while improving income and protection for workers across Malaysia.

Human Resources Minister Datuk Seri R. Ramanan said employers must prioritise recruiting Malaysian workers through the MYFutureJobs portal before hiring foreign workers.

He also highlighted several workforce-related initiatives, including the planned RM2,000 minimum wage, a minimum income formula for gig workers and financial support for e-hailing and p-hailing riders.

The announcements were made during KESUMA's winding-up debate on the Supply Bill 2027 at the Dewan Rakyat on 29 October 2026.

Employers Must Prioritise Local Recruitment Through MYFutureJobs

According to Ramanan, employers must prioritise recruiting local workers through MYFutureJobs before proceeding with foreign worker recruitment.

The initiative supports the government's efforts to increase employment opportunities for Malaysians and reduce reliance on imported labour.

He also explained that foreign worker recruitment is currently restricted to six main sectors and their permitted sub-sectors, subject to strict eligibility criteria and approval conditions.

For employers, this means HR teams should review their recruitment plans and consider available local candidates before applying to hire foreign workers.

Employers can read our How Employers Can Use MYFutureJobs for Hiring in Malaysia guide to understand how the platform supports local recruitment.

RM2,000 Minimum Wage Increase to Benefit Over 4 Million Workers

Ramanan also highlighted the government's plan to increase Malaysia's minimum wage from RM1,700 to RM2,000 per month starting June 2027.

The increase is expected to benefit more than four million workers covered by the minimum wage policy.

However, the minister said that PMKS with annual sales revenue below RM50 million are exempted from the new minimum wage rate to give smaller businesses more time to adjust.

He also explained that the government would implement the wage increase in phases for the specified PMKS group, taking their business capabilities into account and ensuring workers receive compensation that reflects their skills and qualifications.

The exact scope and timing of these arrangements should be followed through the government's subsequent implementation guidelines.

For employers and HR teams, the planned increase highlights the importance of reviewing salary structures, payroll budgets and operating costs ahead of June 2027.

Read our related article: Minimum Wage Malaysia 2027: RM2,000 From June and PMKS Exemption.

Government Reviews Different Minimum Wage Rates for Local and Foreign Workers

Ramanan also addressed a proposal to introduce different minimum wage rates for Malaysian and foreign workers.

He said the proposal requires a holistic examination, particularly regarding its implications under domestic laws and international conventions.

This means the proposal still requires further consideration and should not be treated as an implemented wage policy.

Employers should continue following the applicable minimum wage requirements rather than assuming that different rates for local and foreign workers have already been introduced.

Gig Worker Minimum Income Formula Expected by Early 2027

The government is also working on a minimum income calculation formula and protection standards for gig workers, which are expected to be finalised by early 2027.

According to Ramanan, the formula is based on a comprehensive study involving:

13 engagement sessions.
14 focus group discussions.
37 in-depth interviews involving 1,962 platform workers.
Analysis of 487,805 service transactions.
Benchmarking against 42 countries.

The proposed income calculation will consider several factors, including:

Inflation and cost-of-living adjustments.
Poverty Line Income (PGK).
Basic Expenses for Decent Living (PAKW).
Median wages and minimum wage rates.
Household income.
Operational costs, including vehicle insurance, road tax and maintenance.

The initiative aims to establish a more structured approach to gig worker income while considering the expenses involved in providing platform services.

For employers and businesses that engage gig workers, these developments are important to monitor as the government prepares the income formula and protection standards.

RM160 Million Financial Support for E-Hailing and P-Hailing Riders

Ramanan also announced a special financial support initiative worth RM160 million for e-hailing and p-hailing riders.

The programme involves collaboration between KESUMA and the Ministry of Finance, with the funding shared equally:

RM80 million from the government.
RM80 million from participating platform companies.

According to the minister, Grab is currently being used as a pilot project for the initiative.

This funding is intended to support the welfare of riders working in Malaysia's e-hailing and p-hailing sectors.

Separately, gig workers can also explore EPF's retirement savings initiatives. Read our article on i-Saraan Plus: Employer Guide to EPF Incentives for E-Hailing and P-Hailing Drivers in Malaysia.

Note: i-Saraan Plus is a separate EPF voluntary retirement savings initiative and is not part of the RM160 million rider financial support programme.

PERKESO Contributions for Gig Workers on Multiple Platforms

Ramanan also clarified how PERKESO contribution deductions work for gig workers registered on multiple platforms.

He explained that companies do not make separate deductions for each platform. Instead, contributions are coordinated through a single integrated account to prevent duplicate deductions.

This arrangement is intended to avoid double deductions when gig workers provide services through more than one platform.

For businesses and platform providers, this highlights the importance of understanding the contribution arrangements and worker protection requirements under Malaysia's gig economy framework.

Read our related news article: PERKESO Includes Gig Workers, Hawkers and Self-Employed Malaysians in Op Kesan 2.0.

What Employers and HR Teams Should Know

The latest KESUMA announcements highlight several areas that employers and HR teams should prepare for:

Local recruitment: Prioritise Malaysian candidates through MYFutureJobs when filling job vacancies.
Minimum wage planning: Review salary structures and prepare payroll budgets for the planned RM2,000 minimum wage from June 2027.
Foreign worker recruitment: Check permitted sectors, eligibility requirements and approval conditions before hiring foreign workers.
Gig worker protection: Monitor the minimum income formula and protection standards expected to be finalised by early 2027.
Rider support: Platform companies should follow developments relating to the RM160 million financial support initiative.
Social security contributions: Understand how PERKESO contributions are coordinated for gig workers registered on multiple platforms.

These developments reflect the government's continued focus on local employment opportunities, fairer worker income and better protection across Malaysia's workforce.

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