Malaysia to review Progressive Wage Policy by early 2025

The Malaysian government will conduct a comprehensive review of the Progressive Wage Policy (DGP) by the end of 2024 or early 2025. Economy Minister Datuk Seri Akmal Nasrullah Mohd Nasir stated that the assessment aims to determine if government incentives are effectively driving higher productivity and improved worker pay before the policy concludes in late 2027.

The review will specifically examine whether employer incentives are being paired with productivity-enhancing measures, such as training and upskilling. The Minister emphasized that incentives alone are insufficient if they are not matched by efforts to increase worker output.

According to the Department of Statistics Malaysia (DOSM) Salaries and Wages Survey 2025, real wages have increased by 3.3 percent to RM2,104. This data will serve as a baseline for the 13th Malaysia Plan. The government intends to adopt a holistic wage approach that includes minimum wage protection, career progression, and premium wages for highly skilled workers.