As of June 30, 2025, RM11bil had been deployed into high-growth, high-value sectors such as semiconductors and the energy transition, as well as initiatives to uplift underserved communities and develop local talent, says the MoF.
The MoF
says it is delivering on its promise to raise the rakyat’s quality of life and
lead the national agenda for wage reform. GLCs are to commit to pay a minimum
of RM3,100 a month and drive the economy.
Source: https://www.wikiimpact.com
The RM3,100 threshold is a Living Wage, the amount of money deemed just enough for Malaysians to afford the basics in life. That means that the monthly wages will be enough for housing, food and other essentials.
The cost of living in the country is different for Malaysians compared to foreign workers, who are more likely to sacrifice much of what Malaysians will consume to save their money to be remitted back home. The irony is that the living wage is way higher – almost double – than the minimum wage and what the government pays its lowest-paid civil servant. The current minimum wage is RM1,700 a month. By right, the minimum wage should be at least the amount of money it takes a Malaysian to live with some dignity. The poverty line income in Malaysia is said to be RM2,589 – and that was in 2022!
Both those incomes will make it hard for Malaysians to live decently in the country without having to take a second job to make ends meet. The government’s recent civil servant pay hike saw a 15% to 43% rise in salaries, and that added more than RM10bil in emoluments being spent by the government, with the bill hitting RM140bil a year.
Setting a precedent with the living wage for GLCs is fine, but it needs to be expanded across the board. Setting the minimum wage at such a level just incentivises companies to pay that for its entry-level staff, especially if workers are not employed by larger companies.
In a scenario of rising cost of living, wages need to be revised and hopefully productivity will also improve. Otherwise, we will have low output, high costs and non-competitive products and services!
Reference:
Waging a battle for better pay, Jagdev Singh Sidhu, The Star, 5 July 2025
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