Minimum wage debate: What workers want, what employers say and what comes next
KUALA LUMPUR, Oct 8 — Malaysia’s minimum wage is once again under the spotlight, with workers pushing for hi...
Malaysia’s minimum wage is currently under debate, with workers seeking higher pay and employers warning against a significant increase as the federal government prepares for Budget 2027. The minimum wage represents the minimum basic pay an employer must pay covered workers, excluding additional payments. Malaysia first introduced a statutory minimum wage through the Minimum Wage Order (MWO) 2012 in January 2013, starting at RM900 monthly in Peninsular Malaysia and RM800 in Sabah, Sarawak, and Labuan.
Subsequent amendments in 2016, 2018, and 2019 eventually resulted in a single nationwide rate of RM1,100 starting in January 2019, with rural areas receiving RM1,100 and urban areas RM1,200. The most recent increase occurred in December 2024, raising the minimum wage to RM1,700, effective from February 2025. The next step in this ongoing debate is the scheduled review of the minimum wage order, which is required at least every two years under Section 25(1) of the National Wages Consultative Council Act.
The current RM1,700 rate will be up for review by 2027. The Malaysian Trades Union Congress (MTUC) has proposed raising the national minimum wage to RM3,100, arguing it should be a "living wage" benchmark reflecting the rising costs of living. They also call for higher wages to cover middle-income workers who have remained stagnant at the minimum rate for years.
However, both the SME Association of Malaysia and Malaysia Retail Chain Association (MRCA) have urged the government to postpone any wage increase, citing difficult operating conditions. They believe a blanket increase could severely strain SMEs already facing economic challenges. The government has acknowledged reviewing the current minimum wage but has not yet announced a new rate, stating any decision would require Cabinet approval.
Budget 2027, set to be presented by Prime Minister Anwar Ibrahim on October 9, will be a crucial deadline for any potential changes to the existing RM1,700 minimum wage.
Written by urgent.news from Malay Mail's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
