Budget 2027: Technology adoption, business growth key to higher wages, says minister

KUALA LUMPUR, Oct 14 — Economy Minister Akmal Nasrullah Mohd Nasir emphasized that technology adoption and business scaling are crucial for enhancing company productivity and enabling wage growth sharing with employees, as reported by Bernama. The minister noted that efforts to raise productivity must involve both employees and employers' capabilities.

"The current wage increases must be balanced with productivity, not only at the level of the workers themselves but also among employers," he stated. Akmal Nasrullah highlighted technology and financing that supports business scaling as key methods to strengthen micro, small, and medium enterprises (MSMEs) capabilities. He stated that when MSMEs scale up their businesses more effectively, they can share growth proceeds with workers.

Regarding sectors for productivity improvements, the minister stated the manufacturing sector should move towards comprehensive technology adoption instead of relying solely on low-cost labor, including foreign workers. This aligns with the 13th Malaysia Plan goal of reducing reliance on foreign workers from 15% to 10% by plan period end.

"Such sectors certainly need continued encouragement to further enhance their productivity and capabilities," he added. The minister also mentioned that energy-efficient machinery or equipment can reduce company operating costs. He noted that government matching grants are available for energy efficiency audits, while specific funds for technology adoption and productivity enhancement fall under relevant ministries' purview.