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

Former Malaysian MP Charles Santiago has urged the 2027 budget to address Malaysia's low wages and the disconnect between economic growth and the benefits experienced by the majority of Malaysians. According to a Khazanah Research Institute study, 70% of Malaysians are not feeling the effects of economic growth. The statistics department revealed that two-thirds of wage earners work in semi- or low-skilled occupations, with median wages of RM2,223 and RM1,758 respectively.

Santiago emphasized that even if Malaysia's GDP, GNI, and foreign direct investment grow, the public will not experience prosperity unless wages keep pace with the cost of living. He questioned when economic growth would translate into stronger household incomes and security, urging Budget 2027 to focus on household prosperity at the core of economic policy.

Santiago called for a comprehensive wage strategy, stronger social protection, and action on the cost of living, rather than relying on one-off measures. He criticized the notion that such measures alone could solve a structural affordability crisis. Communications Minister Fahmi Fadzil had previously stated that Budget 2027 would prioritize measures to ease rising living costs, taking into account factors like global crude oil prices.