Malaysia considers minimum wage increase in Budget 2027

Malaysian Prime Minister Anwar Ibrahim has indicated that the current minimum wage of RM1,700 is expected to increase, with specific details slated for announcement during the Budget 2027 presentation next Friday.

Human Resources Minister R. Ramanan emphasized that any adjustments to the minimum wage must be supported by comprehensive studies to prevent negative impacts on the national economy. This follows public discourse regarding the disparity between the rapid rise in the cost of living and the slower pace of wage adjustments.

Comparisons have been drawn to neighboring Singapore and advanced economies like South Korea and Australia, where wage structures and annual adjustments provide different levels of protection and compensation for workers.