Malaysia plans RM2,000 monthly minimum wage, MSMEs to be exempted
The government is set to raise the minimum wage to RM2,000 a month for most workers, while micro, small and medium enterprises will be temporarily exempt.
Ahead of the 2027 Budget, the government plans to lift the minimum wage to RM2,000 per month across most sectors, covering workers of various categories and new graduates. Prime Minister Datuk Seri Anwar Ibrahim is expected to unveil the proposal, which aims to raise living standards and support Malaysia's transition to a higher-income, higher-productivity economy. Micro, small and medium enterprises will be exempted from the increase initially, allowing them to manage cost pressures.
Industry observers note that the move could encourage firms to invest in automation, skills development and higher-value activities, provided wage growth aligns with productivity gains. The Human Resources Minister has indicated that one outlet RM1,700 rate, enforced since August 2025, is under review under the National Wages Consultative Council Act 2011. Trade groups stress that the broader business environment must support higher wages without harming competitiveness.
Why it matters
Higher wages could improve living standards while shaping Malaysia's shift to a more productive, high-income economy.
How the sides frame it
MODERATE AGREEMENTBoth camps report the planned RM2,000 minimum wage and MSME exemption, but the centrist coverage stresses a gradual, sector-specific rollout, while the right-leaning coverage highlights the policy’s role in raising living standards and driving economic transition.
CENTER
Centrist coverage frames the proposal as needing a phased, sector-tailored approach to ease pressure on MSMEs.
RIGHT
Right-leaning coverage frames the proposal as a boost to living standards and a catalyst for a higher-income, higher-productivity economy, with MSME exemptions managing cost pressures.
The right emphasises
- aims to raise living standards
- supports transition to a higher-income, higher-productivity economy
- could encourage automation, skills development and higher-value activities
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