Malaysia's Budget 2027 must tackle persistent wage crisis, says Santiago

Charles Santiago, a former member of parliament, has urged the government to develop a substantial wage policy as part of Budget 2027, rather than relying on isolated announcements or short-term measures. Speaking on the persistent issue of low wages in Malaysia, Santiago stressed the need for a coordinated, long-term approach to improve worker incomes across the economy.

The call reflects growing concerns about Malaysia's wage competitiveness and purchasing power, particularly as inflation continues to erode household savings and living standards. Santiago's remarks suggest frustration with previous budget cycles that have introduced incremental wage-related initiatives without delivering systemic change.

Effective wage policy requires addressing multiple factors including skills development, productivity improvements, and sectoral wage floors, experts argue. A comprehensive strategy would need to balance employer concerns with worker welfare while supporting economic competitiveness in the region.

The government is expected to table Budget 2027 in the coming months, with labour and economic policy among key areas of focus for policymakers.