Budget 2027 should address stagnant middle-income wages, says Tengku Zafrul
THE government should look beyond the minimum wage in Budget 2027 and find ways to raise the earnings of middle-income workers, particularly those making around RM2,000 a month, said Tengku Zafrul Abdul Aziz. The senior political adviser to the prime...
Tengku Zafrul, the senior political adviser to the prime minister, has urged the government to consider raising incomes for middle-income workers in Budget 2027, as the cost of living rises without matching wage growth. The issue is highlighted by World Bank data showing Malaysia's median monthly wage rising from RM1,300 in 2010 to RM1,864 in 2024, while average wages increased from RM1,792 to RM2,570, representing a 43% growth compared to an 82% increase in GDP.
Tengku Zafrul noted that Malaysia's employee compensation share is relatively low at about 35%, similar to the Philippines and Indonesia where the 13th-month salary arrangement boosts annual earnings. He advocated for companies to review wages across the workforce, not just the minimum wage, and emphasized the need for productivity and performance to avoid overburdening employers.
The Malaysian Trades Union Congress has also called for a structured wage system to ensure pay reflects workers' qualifications. Tengku Zafrul warned that geopolitical tensions, oil price fluctuations, and other economic pressures must be factored into Budget 2027, aiming to alleviate household burdens without straining businesses. The budget is set to be presented by Prime Minister Anwar Ibrahim on October 9.
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