Beyond minimum wage, Malaysia needs clearer wage ladders tied to productivity, says Akmal Nasrullah

Beyond minimum wage, Malaysia requires clearer wage structures aligned to productivity, according to Economy Minister Akmal Nasrullah Mohd Nasir. Despite the narrowing wage gap between low- and semi-skilled workers, wage compression is preventing these employees from receiving adequate remuneration. The wage difference between these two categories has narrowed from RM550 in 2016 to RM396 in 2024, indicating that the wage is increasing at the minimum level but not advancing as effectively in higher tiers.

At a meeting of the ministry's monthly assembly, Akmal stated that increasing the floor wage is merely the beginning, and the government must establish more precise wage structures that keep pace with productivity.

In his remarks during the Putrajaya International Convention Centre, Akmal also highlighted that only four states and federal territories—Penang, Selangor, Kuala Lumpur, and Putrajaya—have surpassed the national median monthly wage of RM2,940. To help the remaining six states and territories—Kedah, Perlis, Kelantan, Terengganu, Sabah, and Sarawak—catch up, the ministry has allocated higher development funding.

While acknowledging that Malaysia's inflation is currently moderate at 1.9 percent, Akmal emphasized that managing cost-of-living pressures is crucial for working Malaysians to benefit from salary increases. In August 2025, the country last raised the minimum wage from RM1,500 to RM1,700 per month, with plans to scale it up to RM3,000 per month by 2030 as part of the 13th Malaysia Plan.