The government will raise Malaysia’s minimum wage from RM1,700 to RM2,000 a month from June 2027, a move expected to cover more than four million workers.
Prime Minister Datuk Seri Anwar Ibrahim said micro, small and medium enterprises with annual sales below RM50 million would be exempted to allow them time to adjust their business models.
The government will also introduce a starting monthly wage of RM2,500 for semi-skilled workers and graduates as part of reforms to improve pay in line with workers’ qualifications and skills.
Anwar said workers’ compensation accounted for 33.9% of Malaysia’s gross domestic product, highlighting the gap between wages and productivity.
Meanwhile, government-linked investment companies and government-linked companies will raise their living wage benchmark to RM3,400 a month from RM3,100, benefiting about 230,000 workers.
Anwar also called on private-sector employers to follow suit, noting that some major employers in the banking and oil and gas sectors had already introduced higher pay benchmarks.
