# Malaysia wage policy and economic review

> Live situation record from CLSTR: https://clstr.news/situations/malaysia-wage-policy-and-economic-review
> Updated: 2026-09-28T04:04:00.000Z. Sources: 5. Developments: 2.

The Malaysian government is evaluating its wage strategies to enhance worker pay and productivity. Economy Minister Datuk Seri Akmal Nasrullah Mohd Nasir announced a comprehensive review of the Progressive Wage Policy (DGP) scheduled for late 2024 or early 2025. This assessment seeks to determine if government incentives are successfully driving productivity and improved pay before the policy ends in 2027, using recent data showing a 3.3 percent increase in real wages as a baseline.

Building on these efforts, the government plans to announce further wage measures in the 2027 Budget, scheduled for tabling on October 9. These measures aim to improve wages and ensure graduates find employment suited to their qualifications. While the Sibu Chinese Chamber of Commerce expressed support for increasing income, they cautioned against a “one-size-fits-all” approach. The Chamber noted that while large corporations can absorb higher costs, micro, small, and medium enterprises (MSMEs) face significant challenges regarding cash flow and operational expenses.

## Timeline

### 2026-09-28: Malaysia to announce new wage measures in 2027 Budget

Malaysia prepares to announce new wage measures in the 2027 Budget, while business groups urge a balanced approach to protect SMEs from high labor costs.

3 sources. https://clstr.news/cluster/malaysia-to-announce-new-wage-measures-in-2027-budget

### 2026-09-22: Malaysia to review Progressive Wage Policy by early 2025

Malaysia will review its Progressive Wage Policy by early 2025 to assess if government incentives are successfully boosting worker productivity and income levels.

2 sources. https://clstr.news/cluster/malaysia-to-review-progressive-wage-policy-by-early-2025

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Cite as: Malaysia wage policy and economic review. CLSTR, https://clstr.news/situations/malaysia-wage-policy-and-economic-review
