The government will accelerate Malaysia’s shift towards a high-value, innovation-led economy as part of its strategy to raise workers’ compensation to 40% of GDP by 2030 under the 13th Malaysia Plan (13MP), the Economy Ministry said.
The ministry shared that the employee compensation share edged up to 33.6% of GDP in 2024 from 33.5% a year earlier, leaving a sizeable gap to the decade-end target.
Among key measures undertaken are attracting quality investments through the New Industrial Master Plan 2030, National Semiconductor Strategy and National Energy Transition Roadmap, while strengthening technical and vocational education and training, reskilling and job matching.
The ministry is responding towards an enquiry from Senator Datuk Dr Mohd Na’im Mokhtar on the government’s strategy to increase the share of workers’ compensation to 40% of GDP by 2030 as targeted under the 13MP, as well as to what extent current achievements are on track to achieve the target.
At the same time, the ministry highlighted that the government will also prioritise high-growth, high-value industries and strategic sectors to create more skilled, better-paying jobs, alongside broader wage coordination through the National Wages Consultative Council.
“Minimum wages will be reviewed periodically, while the Productivity-Linked Wage System and Progressive Wage Policy will be expanded where they deliver positive income gains.
“So far, 4,025 employers covering 51,363 workers have participated in the progressive wage initiative,” the ministry said.
