Budget 2027 should respond to Malaysia’s low wages, says ex-MP

Former Malaysian MP Charles Santiago has urged the 2027 budget to address the country's low wages and the fact that many Malaysians are not experiencing the benefits of economic growth. According to a Khazanah Research Institute study, 70% of Malaysians are not feeling the effects of economic growth. Santiago pointed to statistics from the department of statistics, revealing that two-thirds of Malaysian wage earners are in semi- or low-skilled occupations, with median wages of RM2,223 and RM1,758.

Santiago emphasized that even if Malaysia's GDP, gross national income, and foreign direct investment increase, the public will not experience prosperity unless wages keep up with the cost of living.

Santiago, who served as Klang MP for three terms, questioned in a post on X when economic growth will translate into stronger household incomes and security. He called for a comprehensive wage strategy, enhanced social protection, and action on the cost of living rather than one-off measures. Santiago stressed that the country should stop pretending that one-off cash assistance can solve a structural affordability crisis.

October 9, the date when the national budget will be tabled, should focus on putting household prosperity at the center of economic policy.

Communications Minister and government spokesman Fahmi Fadzil stated on August 23 that Budget 2027 would prioritize measures to ease rising living costs. Fahmi emphasized that the budget's preparation would consider various factors, including global crude oil prices.