Malaysian PM announces budget move to address workers' low wages

Malaysian Prime Minister Anwar Ibrahim has announced that the problem of low worker wages will be addressed through the upcoming budget. He expressed dissatisfaction that workers' pay has not risen in line with increased productivity.

According to Malaysian daily The Star, PM Anwar said that while companies are earning billions of ringgit in profits, workers' wages must also rise.

The minimum monthly wage for private sector workers in Malaysia currently stands at about 1,700 ringgit, which is approximately Rs 64,000 at the central bank's buying rate of Rs 37.56. He said the minimum wage for employees under government-owned investment companies has been raised to about 3,100 ringgit.

According to PM Anwar, chief executives at some companies earn about 70,000 to 80,000 ringgit a month. He pointed out that while senior staff receive bonuses of up to about 8 months' pay, lower-level staff get only 2 to 3 months'.

He noted that even university graduates are being forced to drive for app-based e-hailing services because they cannot find jobs matching their qualifications.

Citing South Korea's example of raising wages alongside productivity, he said the government would both incentivize and, if necessary, pressure companies. The 2027 budget is set to be presented to parliament on October 9, though he has not disclosed what the new minimum wage will be.