Govt confident of hitting 40pc workers’ compensation target by 2030, says deputy economy minister

KUALA LUMPUR, Oct 8 — The Malaysian government is confident it will reach its goal of increasing workers' compensation to 40 per cent of gross domestic product (GDP) by 2030, as outlined in the 13th Malaysia Plan (13MP), Deputy Economy Minister Datuk Mohd Shahar Abdullah stated. To achieve this, the government aims to transform the economy structurally, focusing on high-value sectors driven by innovation, digitalisation, advanced technologies, and knowledge-intensive activities.

This shift is expected to generate more skilled jobs with higher wages. During a Q&A session in the Dewan Rakyat, Mohd Shahar addressed concerns about the government's strategy to reach the 40 per cent target by 2030, including measures to ensure wage growth keeps pace with productivity. Currently, workers' compensation stands at 33.9 per cent of GDP, up from 33.6 per cent in 2024, marking a 0.3 percentage point increase.

The government plans to expand the Progressive Wage Policy to strategic sectors to ensure that efforts to raise wages remain in line with productivity growth. Additionally, the administration is committed to raising the benchmark wage to RM3,500, with progress already on track to meet this target.