Malaysia proposes modest wage hike to balance worker pay and inflation risks

At a press conference in Putrajaya, Human Resources Minister R. Ramanan said the government has deliberately set the upcoming wage increase below the RM3,000-RM3,500 level some experts recommend, to prevent higher operating costs and consumer-price inflation. The figure was derived from extensive consultations by the National Wages Consultative Council (MPGN), chaired by Tan Sri Zainal Rahim Seman, which collected input from various ministries and business groups.

The council’s recommendations were reviewed with Prime Minister Datuk Seri Anwar Ibrahim before being presented to the cabinet. The plan mandates a RM2,000 minimum wage for firms with annual turnover of RM50 million or more, while smaller companies are encouraged to follow the same level voluntarily. Ramanan stressed that imposing the requirement on all firms could strain smaller businesses and fuel price rises, so the rollout will be gradual and systematic. He expressed confidence that the measure is sustainable for the economy.