{
  "id": 15976597,
  "title": "Don’t blame Anwar for the low minimum wage",
  "url": "https://urgent.news/2026/10/21/dont-blame-anwar-for-the-low-minimum-wage-15976597",
  "topic": "world",
  "section": "World",
  "published": "2026-10-21T23:30:00.000Z",
  "source": {
    "name": "Free Malaysia Today",
    "slug": "free-malaysia-today",
    "url": "https://www.freemalaysiatoday.com/category/opinion/2026/10/22/don-t-blame-anwar-for-the-low-minimum-wage"
  },
  "original_language": "en",
  "account": "When a minimum wage increase fails to meet public expectations, the instinct is often to blame Prime Minister Anwar Ibrahim. However, this reaction overlooks the complex factors behind Malaysia's wage policy. For one, policy recommendations are crafted with the help of a $1 million consulting firm hired by Talent Corp and the Human Resources Ministry. This analytical approach relies on structured economic assessments rather than political whims. If the final wage figure seems low, it's essential to examine the methodology, data, and assumptions employed by these consultants. The research findings and the consultants' identities should be transparently made public before condemning the Prime Minister. Employer groups' persistent resistance to wage hikes also deters wage growth. Business associations and industry groups frequently lobby against wage rises, arguing that it would cause economic ruin and mass job losses. Their strong opposition leads to exemptions and deferred compliance for smaller businesses, weakening the overall impact of wage reforms. Despite this, Anwar's record shows a persistent commitment to increasing worker compensation. Under the Madani government, the minimum wage has risen by 33% from RM1,500 in 2022 to RM2,000 in 2027. Graduate and semi-skilled workers now earn a minimum of RM2,500 monthly. GLCs have also set a higher baseline living wage, increasing it from RM3,100 to RM3,400 in Budget 2027. The real culprits in this story are corporate lobbies fighting wage increases and the consultants who produce conservative recommendations despite substantial fees. Instead of blaming Anwar, the public should demand accountability from these consultants and employer groups undermining fair pay for Malaysian workers. Research published in The Economist suggests caution regarding aggressive minimum wage hikes due to potential hidden economic distortions. While Nobel Prize winner David Card and others found that negative job losses are offset by higher spending and economic activity, recent studies in places like Seattle indicate that high-wage floors can reduce hiring of low-wage workers and decrease total work hours. To offset higher pay, employers might implement unpredictable scheduling, fewer workplace perks, or higher output demands, potentially leading to workplace accidents. High minimum wages can also negatively impact poverty by forcing businesses to pass higher costs onto consumers through rising prices, affecting affordability. Alternatives, such as in-work tax credits, progressive wage policies, and reverse income taxes, are more effective in directly targeting low-income households without creating economic distortions or hidden costs.",
  "summary": "Anwar Ibrahim has raised the minimum wage by 33% since taking office as prime minister, and he should not be faulted if well-paid consultants and lobbyists oppose further hikes.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Free Malaysia Today",
        "title": "Don’t blame Anwar for the low minimum wage",
        "url": "https://urgent.news/2026/10/21/dont-blame-anwar-for-the-low-minimum-wage",
        "published": "2026-10-21T23:30:00.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}