The Malaysian Trades Union Congress (MTUC) has responded to the government’s decision to raise the minimum wage from RM1,700 to RM2,000, saying the new rate still falls short of what workers need to cope with current living costs.
Budget 2027, tabled by Prime Minister Datuk Seri Anwar Ibrahim on Oct 9, will raise the national minimum wage to RM2,000 from June 2027, benefiting more than four million workers. Micro, small and medium enterprises with annual sales below RM50 million will be exempted for the time being.
MTUC had called for RM3,100
Before Budget 2027 was tabled, MTUC secretary-general Kamarul Baharin Mansor had urged the government to raise the minimum wage to RM3,100.
According to Free Malaysia Today, Kamarul said workers’ wages had not kept pace with increases in productivity, company profits and the cost of living.
MTUC had proposed RM3,100 as a more appropriate benchmark after taking into account expenses such as food, housing, transport and other basic necessities.
GLC living wage now even higher
Under Budget 2027, government-linked investment companies and government-linked companies will raise their living wage benchmark from RM3,100 to RM3,400, benefiting around 230,000 workers.
Anwar also urged private-sector employers to follow the example of major employers that have introduced higher wage levels.
MTUC has previously argued that GLCs and GLICs should take the lead in providing better wages before similar expectations are extended more widely to the private sector.
Employers welcome RM2,000 rate
Employers, meanwhile, have taken a more cautious view.
Malay Mail reported that the Malaysian Employers Federation welcomed the RM2,000 minimum wage and said the exemption for smaller businesses would give them time to adjust without putting jobs or business viability at risk.
The SME Association of Malaysia also welcomed the exemption, but warned that the 17.6% wage increase could still lead to higher operating costs, affect hiring and put pressure on consumer prices.
For MTUC, however, the debate is unlikely to end at RM2,000, with the union continuing to push for wages that more closely reflect Malaysia’s rising cost of living.
