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

PUTRAJAYA, Sept 22 — The country's top wage negotiator, Economy Minister Akmal Nasrullah Mohd Nasir, has warned that wage compression is preventing Malaysian workers from receiving fair pay despite the narrowing gap between low- and semi-skilled salaries. According to a recent Bank Negara report, the wage disparity between these two groups has shrunk from RM550 in 2016 to RM396 in 2024.

Nasir explained during the ministry's monthly meeting at the Putrajaya International Convention Centre that while the minimum wage is increasing, it is not advancing as rapidly at higher levels. He emphasized that raising the minimum wage is just the beginning, and the government needs to establish clearer wage ladders that align with productivity growth.

Nasir highlighted that only four states and federal territories have surpassed the national median monthly wage of RM2,940: Penang, Selangor, Kuala Lumpur, and Putrajaya. To assist the remaining six states and territories — Kedah, Perlis, Kelantan, Terengganu, Sabah, and Sarawak — in reaching this benchmark, the ministry has agreed to allocate more development funds to them.

Despite noting that Malaysia's inflation remains low at 1.9 percent, Nasir stressed the importance of managing cost-of-living pressures so that salary increments can genuinely benefit working Malaysians.

In August 2025, Malaysia last increased the minimum wage from RM1,500 to RM1,700 per month, and the government aims to raise it to RM3,000 per month by 2030 as part of the 13th Malaysia Plan (13MP).