Prime Minister Anwar Ibrahim has announced that the minimum wage rate will be raised from RM1,700 to RM2,000 effective June next year...BUT only for about 4 million workers, of the 16 million Workers in Malaysia(that is about 13 Million Malaysian Workers)
The power to increase MINIMUM WAGE in under the MINISTER of Human Resources, who acts on the advice/recommendation of the National Wages Consultative Council under the NATIONAL WAGES CONSULTATIVE COUNCIL ACT 2011.
RICHER companies HIGHER MINIMUM WAGE - poorer companies lesser minimum wage OR better still a 'profit-sharing' MODEL ??? Higher Minimum Wage for 3D work...for different areas based on cost of living
22 Council to make recommendation(1) Based on the actions taken under section 21, the Council shall, at such time as the Minister may determine, make a recommendation to the Government through the Minister on the following matters:
(a) the minimum wages rates;
(b) the coverage of the recommended minimum wages rates according to sectors, types of employment and regional areas;
(c) the non-application of the recommended minimum wages rates and coverage to any sectors, types of employment and regional areas or to any person or class of persons;
(d) the commencement of the minimum wages order and the different dates for the commencement of the minimum wages order to different sectors, types of employment and regional areas, or to different persons or class of persons; and
(e) other matters relating to the minimum wages, including the implementation of the recommended minimum wages rates and coverage.
Now, once the Council makes a recommendation - the Government still do not have to follow, and request another recommendation. SHOULD we make it mandatory for the GOVERNMENT to accept and ACT on the recommendation of the Council?
When can MINIMUM WAGES be changed - at ANY TIME. Section 25(1) The Council shall, at least once in every two years, review the minimum wages order > what this means is that ANYTIME Minimum wage rates can be changed/increased/reduced at ANY TIME - BUT at least once in every 2 years.
SO, recently when the COST of LIVING suddenly increased as a consequence of US/Israel ILLEGAL war against Iran, and the 'closure' of the Straits of HORMUZ - the government could have speedily increased the MINIMUM WAGE then to help workers COPE.
MINIMUM WAGE falls on the EMPLOYER COMPANIES, not Government > BUT Government cad ADD-ON as RIGHT additional monies so every worker and their families have ENOUGH money lo LIVE
Note also, if the Minimum Wage Council does not move fast - the Government can ask them for a 'quick emergency review" - see Section 25(2) (2) Notwithstanding subsection (1), the Council may, on its own accord or upon the direction of the Government, review the minimum wages order.
THUS - can Anwar's 'promise' to increase MINIMUM WAGE, worse not NOW or at the end of the year > but just in JUNE 2027... demonstrates a lack of care for workers, and maybe a PRO-EMPLOYER move ... Will companies now expressing thanks give Anwar and his party 'POLITICAL FUNDING'????
A Good PM or GOVERNMENT would have increased MINIMUM WAGE months ago - certainly not a promise to do only after JUNE 2027(that is about 8 MONTHS time????)
IT is positive that finally the GOVERNMENT understands that some poorer employers should not be treated in the same manner as RICHER employers.
He also said micro, small and medium enterprises with annual sales below RM50 million will be exempted to allow them time to adjust their business models.
I think it would have been better if the annual sales was MUCH LOWER and reasonable, or maybe it should have better to focus on PROFITS rather than INCOME > because some businesses having high sales, but after subtracting costs(including labour cost) - their profit may be much lower. BETTER to look at PROFITS...
ANWAR ignores Bank Negara finding, and even EPF's Belanjawan Guide - and offers workers so small and inadequate MINIMUM WAGE
A MINIMUM Wage lower than RM3,000 (relying on 2018 Bank Negara Report), and 24/25 EPF's Belajawan GUIDE. Does Anwar not care whether workers have sufficient money to LIVE?
Anwar Ibrahim thinks that an increase of MINIMUM WAGE from RM1,700 to RM2,000 will make workers in Malaysia HAPPY - then he is a FOOL.
Anwar is talking about RM2,000 > which obviously is FAR LESSER that Bank Negara's 2018 recommendation of RM2,700 and more, and also EPF's Belanjawanku Expenditure Guide of 24/25 that recommended RM3,100 then. Today, in 2026, it would be even much HIGHER that is needed by Malaysian workers to LIVE.
BNM governor Muhammad Ibrahim said people should be paid so they could live comfortably....The central bank estimates that the living wage in Kuala Lumpur for a single adult is RM2,700, a couple without child RM4,500 and couple with two children RM6,500.Election - Did parties commit to employment security, increased financial security, reforms in employment law, etc?
The central bank defines living wage as the level of income needed for a household to afford a minimum acceptable standard of living. - FMT News, 29/3/2018
The benchmark living wage, based on comparative analysis of industry wages and cost of living standards outlined in Budget 2024/2025 Expenditure Guide, was set at some RM3,100 per month, close to double the RM1,700 monthly minimum wage that has been implemented since Feb 1, 2025. - EDGE, 1/5/2025 The Belanjawanku Expenditure Guide, which was jointly developed by EPF and the Social Wellbeing Research Centre, University Malaya, provides estimates of minimum monthly expenses needed for a good standard of living.
Remember, it was ANWAR himself who was UNHAPPY that some businesses makes BILIIONs and pay their workers so little > thus should he NOT have made MINIMUM WAGE based on income/profits of employer companies earning BILLIONS?? Now the workers in these BILLIONS of ringgit earning companies ONLY pay their workers a MINIMUM WAGE of RM2,000 - Is this JUSTICE that Anwar wants??
The widening gap between corporate profits and workers’ wages will be among the issues addressed in the upcoming Budget 2027, says Datuk Seri Anwar Ibrahim.The Prime Minister said it was unacceptable for companies to make billions of ringgit in profits while their workers continued to earn low wages. Star, 26/9/2026
Another BULL SHIT - because will just be a RM300 Minimum Wage increase in JUNE 2027 for just 4 million workers ...
THUS, the WISER solution is to base MINIMUM WAGE on the PROFITS of Employer Companies, say
If Employer has a MILLION Profit, then Minimum wage should be RM3,100
If Employer has 3 MILLION Profit, then Minimum wage should be RM4,100
If Employer has a 50 Million profits- then Minimum WAge should be RM5,000
This suggested method of setting MINIMUM WAGE is better - based on income/profit of EMPLOYER COMPANY will be JUST and will also PROTECT small businesses trying to SURVIVE - for which a DIFFERENT FORMULA of wages should be considered > a PROFIT SHARING SCHEME maybe, so if the employer makes more PROFIT the wages go up.
2nd consideration > COST of LIVING is different in different places > so, where the worker lives/works will also be considered in determining the MINIMUM WAGE
3rd Consideration > there are many small businesses who hardly survive or make profits - for such employer businesses, usually in smaller towns, housing areas, rural areas and kampungs, then maybe a different consideration > Maybe NO Minimum WAGE or a lower MINIMUM Wage - but a requirement that PROFITS should be shared with workers- where owners take 60% and the workers take a 40% share of profits. URGE other benefits for workers like the provision of food and other benefits >> SO sad if these small business have to close down simply because they no longer can afford workers because MINIMUM WAGE laws made workers unaffordable,
This time around, the profits/income of employer companies were considered by Anwar BUT....
He[Anwar Ibrahim] also said micro, small and medium enterprises with annual sales below RM50 million will be exempted to allow them time to adjust their business models.
What would be better would be to CONSIDER Profits, rather than annual sales - HIGH annual sales does not take into account EXPENSES (including wages for Workers), thus a BETTER option is to look at PROFITS..rather than income?
THEN, now, will MINIMUM WAGES of workers working with employers with annual sales LESS than RM50 million will not be increased. How many?
The number of employed workers in Malaysia reached 16.87 million as of August 2026, according to data from the Department of Statistics Malaysia (DOSM)
'Tabling the 2027 budget, Anwar said more than four million workers will benefit from the new minimum wage.', SO how about the other 12.87 MILLION Workers?
First, the EXEMPTION should BEST be for Employer Companies earning annual PROFITS of RM1 Million or MORE - not RM50 MILLION (BETTER, Higher the Profit, HIGHER the MINIMUM WAGE). For the rest of employers, maybe a PROFIT sharing scheme > maybe 40% of Profits should go towards wages of workers?
ALL IN ALL, the increased of MINIMUM Wages is still Pro-EMPLOYER? Not now, but in JUNE 2027, and the fact that it only benefits 4 MILLION workers > and about 12 MILLION other workers are LEFT OUT ...
Now, the BOSSES is all Malaysians > so did the Malaysian Government JUST DISCRIMINATE against at least 12 Million Workers(and their FAMILIES)?
Many politicians/political parties do not understand WORKERS - so they tend to talk just about WAGES - but it is NOT the major concern of Malaysian workers, who has the POWER TO VOTE come next GENERAL or State Elections...
THE MAIN CONCERNS is the LOSS of Employment Security - which assures the worker REGULAR EMPLOYMENT until retirement age > NOW, more and more short term contracts - thus things like INCREASED RETIREMENT does not benefit these workers. In Malaysian law, worker rights increase by LAW the longer they work for the SAME Employer... but more and more employer NO LONGER providing REGULAR EMPLOYMENT - they DENY workers this by 'short-term employment contracts' (which maybe should for MIGRANT workers who come to Malaysia to work for a few yers, BUT not for LOCAL Malaysian WORKERS) - MPs are assured 'employment' for 4-5 years, but many Malaysian worker only have GUARANTEED employment for a year or 2 - then FIND new JOB, and start at the bottom all over again with low wages.
HOW EXACTLY HAS THIS ANWAR IBRAHIM's PAKATAN HARAPAN LED COALITION DONE TO IMPROVE RIGHTS/WAGES FOR WORKERS?
BIGGEST PROBLEM of Malaysian WORKERS is the LOSS of Regular Employment until RETIREMENT..
The Malaysian Government maybe 'SYOK SENDIRI' (happy themselves) when they INCREASE RETIREMENT AGE - well, those who have REGULAR EMPLOYMENT maybe happy - but for those who have short-term contract employment is not affected > because their reality is that they LOSE JOBS every time their Contract ends - which could be in 1 year, 2 years and 3 years..> and here MALAYSIAN Government and ANWAR IBRAHIM has failed to do anything about this...
With NO REGULAR employment, increased RETIREMENT age do help these workers,
Increased Maternity/Paternity Benefits will not help these workers (because women workers high likelihood to get Pregnant may not even be employed, and when the deliver their baby - will they even enjoy their MATERNITY leave benefits) - as their employment may end before they deliver, and after the baby arrives, will they even not get that MATERNITY Leave if their employment contracts end??,
then they are also deprived of rights like increased annual leave/sick leave... because it is based on TENURE but a employment contract of 1 year or 2 year means that their annual leave/sick leave will not increased because they worked for the SAME employer???
Section 60E Annual leave - EMPLOYMENT ACT 1955
(1) An employee shall be entitled to paid annual leave of-
(a) eight days for every twelve months of continuous service with the same employer if he has been employed by that employer for a period of less than two years;
(b) twelve days for every twelve months of continuous service with the same employer if he has been employed by that employer for a period of two years or more but less than five years; and
(c) sixteen days for every twelve months of continuous service with the same employer if he has been employed by that employer for a period of five years or more,
Section 60F Sick leave - EMPLOYMENT ACT 1955
be entitled to paid sick leave-
(aa) where no hospitalisation is necessary-
(i) of fourteen days in the aggregate in each calendar year if the employee has been employed for less than two years;
(ii) of eighteen days in the aggregate in each calendar year if the employee has been employed for two years or more but less than five years;
(iii) of twenty-two days in the aggregate in each calendar year if the employee has been employed for five years or more; or
and if he has not completed twelve months of continuous service with the same employer during the year in which his contract of service terminates, his entitlement to paid annual leave shall be in direct proportion to the number of completed months of service:
Maybe a law CRIMINALIZING the Employer if he/she terminate or fail to extend contract > and then simply employs a NEW worker to do the same job the previous worker was doing...
In the past, REGULAR EMPLOYMENT was a NORM - a worker employed first on PROBATION of usually no more than 3 months - the time for employer to determine suitability of worker), and then the worker becomes a REGULAR EMPLOYEE - that means employment security - and his employment is SECURE until RETIREMENT, until earlier RETRENCHMENT or until TERMINATION for a serious employment misconduct or breach of contract.
What Malaysian Workers desperately need is REGULAR EMPLOYMENT - then there is EMPLOYMENT SECURITY - and that worker can enjoy the RIGHTS that increase based on the longer he works for the SAME EMPLOYER...will also enjoy increased WAGES that do increase every year..and the longer he/she works for the same employer wages also INCREASE at least maybe RM50 every year > but still an increase.
When a short-term employee finds a new job, he/she starts at GROUND ZERO at the starting wage(maybe the MINIMUM WAGE.
The reality of most Malaysian workers is that the money needed to LIVE increases - they get married, have children ... and that is WHY REGULAR EMPLOYMENT is important...
Then, the STRESS and DIFFICULTY of finding a NEW JOB - which may even mean a Job in a different town/State - and so, the ability to go to work from HOME - which means that the worker may even be forced to stay somewhere else to work, separate from their family..
Take about WRONGFUL DISMISSAL and the right to CLAIM Reinstatement (get back job) - for REGULAR employee right to work is until RETIREMENT AGE > However, if your employment is because of a 1 or 3 year employment contract/agreement > then the right of employment with the same employer shrinks to 1 year or 3 year with reference to the Employment Agreement - so, even if they FILE for wrong dismissal and for REINSTATEMENT - so even if the worker wins, the RIGHT to reinstatement for how many months? Thus, no regular employment - just short-term employment > the RIGHT to Claim REINSTATEMENT by reason for WRONGFUL DISMISSAL is also greatly affected or LOST. NO ACCESS TO JUSTICE for these workers exist in Law for short-term contract employees?????
Anwar's GOVERNMENT gives 'monetary assistance' to those in B40 and M40 > but that is based on government policy NOT A RIGHT IN LAW - so it is very precarious.
WHY not a law that will guarantee WORKER that MONEY will be given that worker if he/she earns less that LIVING WAGE... So, if Anwar wants to protect employer, then government should GUARANTEE in law, that the government will TOP-UP so that every Malaysian will have a LIVING WAGE.
Anwar Ibrahim, Ministers, MPs > try to live on RM1,700(or RM2,000) a month - is it ENOUGH to survive - paying rent/housing loan, food/clothing other needs for the family, transportation charges, money for education, and also healthcare - then these 'RICH' politicians will understand the problems faced by the ordinary Malaysian...
Now, even the GOVERNMENT too have begun providing some workers NO REGULAR EMPLOYMENT - just short-term contract employment?
WHY IS ANWAR AND THE GOVERNMENT STILL NOT PROTECTING ALL WORKERS IN MALAYSIA > Now about 16.8 Million workers?
The Sara Scheme that is providing AID is also BAD - because Malaysians are treated like 'beggars' and government pays alms... WHY is Malaysia NOT EMPOWERING WORKERS - giving them the capacity to earn HIGHER wages - thus no more 'dependent' on politicians/political parties....so, is Anwar still using the strategy of keeping people POOR and dependent on Government AID - a strategy to get more to support PKR and PH? Is this OK?
Is there still a QUOTA that protects Malaysian Workers - where all workplaces are allowed to employ Malaysian workers - and no more that 30% of foreign workers?
Does this 30% quota only applicable to EMPLOYEES of the owner of the Workplace? Now, that Malaysian government allows the use of other workers(employees of Labour Suppliers) - is this a WAY to have more foreign workers at the workplace more than the 30% limit?
When workers die as a result of an industrial accident > why does NOT all lives considered EQUAL - why do higher waged workers get a HIGHER payout? We have to think about this...
Important to note that TRADE UNIONS and workers can 'fight to get' higher MINIMUM WAGE - but the question is HOW many Trade Unions successfully increased MINIMUM Wage through maybe the Collective Bargaining Agreement - or did UNIONS also fail their worker members?
Section 24(4) NATIONAL WAGES CONSULTATIVE COUNCIL ACT 2011 > Nothing in this section shall be construed as preventing an employer and an employee from agreeing to any rates of the basic wages which are higher than the minimum wages rates as specified in the minimum wages order.
Have Malaysian Trade UNIONS failed to fight for HIGHER MINIMUM WAGE? How many tried and failed?
NOW, workers should choose NOT to VOTE for candidates/parties that does not commit to fighting for better worker rights...and Trade Union Rights. What should political parties commit to for workers:....
## REGULAR EMPLOYMENT - and abolition of precarious short term employment contracts
## That ALL workers will be employees of the the principal or owner of that agricultural or industrial undertaking, constructional work, trade, business or place of work; or statutory body or that government authority - this means ALL employees can join Trade Unions and enjoy all benefits of the Collective Bargaining Agreement (an agreement and Employer)
## ...(more in a later blog post...)
* ONE thing that Anwar Ibrahim could have done is INCREASE Corporate Taxes - ???
See also
MINIMUM WAGE - Yes, State Government can increase Minimum Wage, Employer or CBAs can increase MINIMUM WAGE
RM1,700 Minimum Wage - Disappointing and possibly DISCRIMINATORY?
PM Anwar Ibrahim:- 'foolish' praise (or 'self praise') for Khazanah(under Finance Minister) for their RM3k MINIMUM WAGE - Minimum Wage RM3,000 for all government companies, GLCs and government project holders - and every worker in Malaysia?
With RM1.5 Trillion Debt, should Malaysia increase wages of 1.7 million Public Officers? Maybe only those who earn below RM4k? But increase MINIMUM Wages now for all?
Abolish PENSION for MP/Minister - EPF only. Abolish double income for Ministers - 1 pay, the highest pay only? Parliament has full control of funds spend on MPs - including funds for MP's work, staff, office, etc...
Minimum wage to rise to RM2,000 from June 2027
Prime Minister Anwar Ibrahim says more than four million workers will be covered by the new minimum wage.
Tabling the 2027 budget, Anwar said more than four million workers will benefit from the new minimum wage.
He also said micro, small and medium enterprises with annual sales below RM50 million will be exempted to allow them time to adjust their business models.
Anwar said the minimum wage only raises the income floor for workers, while skilled workers are still not paid wages commensurate with their qualifications.
“Therefore, the government will reform the wage framework by introducing a minimum salary of RM2,500 per month for semi-skilled workers and graduates as a starting point,” he said. FMT, 9/10/2026
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