Malaysia to announce new wage measures in 2027 Budget

The Malaysian government is set to announce decisive measures in the 2027 Budget, to be tabled on October 9, aimed at improving wages and ensuring graduates secure jobs commensurate with their qualifications. Previous initiatives include a directive for government-linked companies (GLCs) to implement a living wage of RM3,100.

The Sibu Chinese Chamber of Commerce has responded to these upcoming plans, supporting the goal of increasing income but cautioning against a “one-size-fits-all” approach. The Chamber emphasized that wage policies must account for the varying profitability and cost structures of different sectors. They noted that while large GLCs and multinational corporations can absorb higher costs, micro, small, and medium enterprises (MSMEs)—which constitute over 90% of businesses in Malaysia—face significant challenges regarding cash flow and rising operational expenses.

Specifically, the Chamber highlighted that businesses in Sarawak face unique hurdles, including high logistics costs and a dispersed population. They urged the government to prioritize wage increases for highly profitable companies while protecting the survival of smaller businesses to prevent job losses and price hikes.