2027 Budget must lift young Malaysians' earning power: Trada
KUALA LUMPUR: 2027 Budget should focus on raising the earning power of young Malaysians as wages lag behind living costs, particularly in Sabah and Sarawak, said Pertubuhan Transformasi Dayak (Trada).
The 2027 Budget should prioritize raising the earning potential of young Malaysians, as their wages are falling behind rising living costs, especially in Sabah and Sarawak, according to Pertubuhan Transformasi Dayak (Trada). The trade president, Joseph Ninting, emphasized that the issue is about providing young Malaysians with access to better-paying jobs and clear career progression pathways, rather than just creating more jobs.
A survey by Institut Masa Depan Malaysia (Masa) revealed that 42% of Malaysians cited the cost of living as their top concern, significantly more than the next most common issue. Meanwhile, Bank Negara Malaysia statistics showed that prices increased by 9.8% between Q1 2020 and Q1 2025, while private-sector wages grew by only 7.9% during the same period.
This wage disparity is particularly pronounced among younger workers, with median pay for those aged 25-29 decreasing by 5% from RM2,206 in 2019 to RM2,095 in 2024. Trada argued that the 2027 Budget should shift its focus from merely creating jobs to fostering higher-value, better-paying employment. They proposed that government incentives, particularly for investments in Sabah and Sarawak, should be tied to wage growth, local hiring, skills transfer, and career progression.
The association highlighted priority sectors like artificial intelligence, digital services, advanced manufacturing, renewable energy, engineering, and modern agriculture. Trada called for expanded access to grants, scholarships, and low-interest financing for young Malaysians to reskill and upskill in areas such as TVET, AI, data analytics, cybersecurity, automation, advanced manufacturing, and green technologies.
They also suggested a stronger "Youth First Home" approach, including affordable housing options, rent-to-own schemes, and assistance with upfront home-ownership costs. While acknowledging the importance of previous initiatives like Skim Rumah Pertamaku, PR1MA, and MyDeposit, Trada emphasized that these should not become long-term solutions to cost-of-living pressures.
Instead, the long-term objective should be to accelerate the earnings growth of young Malaysians faster than their rising cost of living, enabling them to compete, secure well-paying jobs, and own homes in their home countries.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
