Minimum wage decision deferred to PM Anwar for Budget 2027

KLUANG — Economy Minister Amir Maslan on Saturday declined to commit to a specific minimum wage increase, instead positioning the decision as one for Prime Minister Anwar Ibrahim to make during the upcoming budget cycle.

When asked about the possibility of raising the minimum wage to RM2,000, Maslan suggested that such policy decisions would be determined during the annual budget process rather than through immediate ministerial announcement. The comments reflect the typical budgetary decision-making process, where wage and labour policies are weighed alongside broader fiscal considerations.

The minimum wage remains a contentious issue in Malaysian labour circles, with worker advocates and some economists arguing that current levels have not kept pace with rising living costs. The government has previously implemented wage increases at intervals, most recently adjusting the minimum wage in recent years amid inflationary pressures.

Maslan's remarks suggest the government is still evaluating the feasibility and economic impact of a RM2,000 minimum wage before committing to such a policy shift. Budget 2027 is expected to address various economic priorities, and any wage adjustment would need to be balanced against other spending commitments and economic conditions.

The deferred decision reflects ongoing deliberation within government ranks on how to support workers' purchasing power while managing potential impacts on business operations and inflation.