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

KUALA LUMPUR, Oct 8 — The Malaysian government is confident of reaching its goal of raising workers' compensation to 40 per cent of the country's gross domestic product (GDP) by 2030, aligning with the objectives outlined in the 13th Malaysia Plan (13MP), Deputy Economy Minister Datuk Mohd Shahar Abdullah stated. To achieve this target, the government, via the Economy Ministry, plans to hasten structural economic transformation towards a high-value economy fueled by innovation, digitalization, advanced technologies, and knowledge-intensive activities, which will result in more skilled jobs with higher wages.

During a Q&A session in the Dewan Rakyat, he addressed the need to ensure wage growth keeps pace with productivity, highlighting that workers' compensation currently accounts for 33.9 per cent of GDP, up from 33.6 per cent in 2024. The government is also exploring the expansion of the Progressive Wage Policy to strategic sectors and targeting a benchmark wage of RM3,500, which is currently on track to be realized.