Minimum wage policy in Malaysia has the potential to increase productivity through higher quality production and proper training programs. It also promotes social justice by ensuring a more equal sharing of profits between firms and workers. Minimum wage can help SMEs transform into more competitive businesses focused on quality over low costs as Malaysia moves towards more open trade. It may also help retain skilled secondary school graduates, contributing to Malaysia's goal of becoming a high-income economy. Combined with other strategic planning and an emphasis on intrinsic job rewards, minimum wage could reduce businesses' reliance on foreign workers and increase productivity among domestic semi-skilled labor.