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Carsome urges skill training to match Malaysia’s 2027 minimum wage rise

Carsome Group’s chief business officer says the 2027 budget’s minimum-wage increase must be accompanied by industry-focused training to keep productivity and competitiveness alive.

In a statement, Carsome Group’s chief business officer Aaron Kee warned that the 2027 Budget’s minimum-wage hike—from RM1,700 to RM2,000 and a RM2,500 minimum for semi-skilled and graduate positions—must be matched by investments in industry-relevant training to avoid eroding business competitiveness. He stressed that the automotive sector depends on skilled technicians, inspectors and specialised talent to maintain service quality and consumer confidence, making continuous upskilling essential as payroll costs rise.

Kee pointed to the budget’s focus on the Automotive Hi-Tech Valley in Tanjong Malim and green investment incentives as signals that the government aims to strengthen the country’s automotive capabilities. He added that expanding EV charging infrastructure and new telematics requirements present further chances for firms to adopt technology and improve efficiency. Ultimately, aligning vocational training with real-world needs could turn higher wages into better livelihoods without jeopardising the sustainability of businesses that create those jobs.

Why it matters

Higher wages alone won’t boost the automotive sector unless workers receive the training needed to sustain productivity.

In this story

minimum wageskills trainingautomotive industryproductivitybudget 2027green investmentEV chargerstechnical educationpre-owned vehicles
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