PM vows budget measures to lift private sector wages

The Prime Minister has taken aim at major corporations, expressing concern over the widening gap between corporate profits and employee compensation. The government plans to use next year's budget as a vehicle to implement reforms designed to boost private sector wages.

Criticising what he described as unsustainable profit-taking by large firms at the expense of workers, the PM signalled that fiscal measures would be deployed to incentivise better wage practices across the business community. The move reflects growing pressure on policymakers to address cost-of-living concerns among Malaysian workers.

The specific mechanisms to be included in the 2027 budget have not yet been detailed, though officials have indicated the measures will focus on encouraging private employers to raise compensation levels. This approach suggests the government may pursue tax incentives or other indirect mechanisms rather than mandatory wage increases.

The announcement comes as Malaysia grapples with inflation and stagnant wage growth in certain sectors, issues that have become prominent in public discourse and workplace negotiations across the region.