Decision on pay hike soon

By the Editorial Team · Tuesday, September 29, 2026

Malaysia’s Economy Minister Akmal Nasrullah Mohd Nasir stated that the government will announce its decision on raising the minimum wage to RM2,000 during the Budget 2027 presentation on October 9, considering the impact on workers and small businesses. The budget will also detail a RM127 million allocation for nationwide police infrastructure repairs, reflecting the government’s efforts to balance economic growth with public service improvements.

Malaysia’s Economy Minister Akmal Nasrullah Mohd Nasir indicated that the government’s decision on a potential increase in the minimum wage will be announced during the tabling of Budget 2027 by Prime Minister Datuk Seri Anwar Ibrahim on October 9. The proposed raise to RM2,000 has prompted discussions regarding its impact on businesses, particularly micro, small, and medium enterprises (MSMEs).

Speaking after a visit to the Kluang District Police headquarters, Akmal emphasized the need to balance the interests of workers and employers. He noted that while the government aims to improve workers’ livelihoods, it must also ensure that small businesses can manage the higher operating costs that may result from a wage hike. “We are taking into account several segments and how implementation can be balanced so that we can continue to look after our workers while ensuring the sustainability of employers, particularly small businesses and MSMEs,” he said.

Economists have raised concerns that increasing the minimum wage to RM2,000 could cause inflationary pressures, leading to higher prices for goods and services. Akmal acknowledged these worries, reiterating that the government is considering varying employer capacities and the broader economic implications before making a final determination.

In addition to addressing labour matters, Akmal announced that the federal government has allocated RM127 million under Rolling Plan 1 of the 13th Malaysia Plan for the repair and maintenance of police infrastructure nationwide. This figure reflects an increase of RM5 million from the original budget of RM122 million.

Of the total funds, RM44.35 million is earmarked for restoring police stations, while RM77.65 million will be used for the upkeep of 3,716 police quarters across the country. Specifically, Kluang district will receive RM3.7 million for upgrading 10 blocks of police quarters and performing maintenance work on local police stations. Akmal highlighted that the targeted approach to budget allocation is designed to address actual needs and improve the delivery of public services.

The government’s forthcoming budget announcement is expected to clarify the minimum wage adjustments and outline other fiscal policies as Malaysia continues its economic planning under the Malaysia Madani agenda.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.