Backbenchers Club urges impact study of upcoming minimum wage rise

During a debate on the Supply Bill (Budget) 2027, the MADANI Government Backbenchers Club proposed that the Ministry of Human Resources, together with the Ministry of Economy, carry out impact assessments at six and twelve months following the minimum wage increase from RM1,700 to RM2,000. Datuk Seri Dr Zaliha Mustafa said the study must look at real wages after inflation, employment levels, working hours, productivity and overall business conditions.

She highlighted that Malaysia’s employee compensation share of GDP stands at 33.9 per cent, indicating room for better income distribution. To mitigate cost pressures on labour-intensive firms, she recommended a targeted productivity support package offering small-scale automation, digital technology adoption and upskilling. Additionally, she urged the Ministry of Domestic Trade and Cost of Living to monitor price changes for essential goods before and after the wage rise to ensure the increase translates into greater purchasing power for workers.