Prime Minister Datuk Seri Anwar Ibrahim has emphasized the government’s commitment to addressing persistently low wages despite rising productivity and robust corporate profits, with new measures to be announced in Budget 2027. Speaking at the Himpunan Mesra Alumni Universiti Teknologi Mara (UiTM) event in Shah Alam on Saturday, Anwar highlighted the disparity between company earnings and worker compensation as a key concern.
The Prime Minister, who also serves as Finance Minister, noted that while productivity in Malaysia has been increasing, wages have not kept pace. He pointed out the unacceptability of companies generating billions of ringgit in profits while workers continue to earn relatively low wages, citing a private-sector minimum wage of RM1,700 as an example. Anwar stated, “If productivity is soaring and companies are making billions in profits, but workers are still earning RM1,700, then we have not raised the floor.”
He underscored the government’s dual focus on “raising the ceiling” through higher productivity and corporate earnings, as well as “raising the floor” by improving wages and expanding opportunities for workers. Recent steps to raise wages include increasing salaries for public sector employees, setting a minimum wage of RM1,700 for the private sector, and establishing a RM3,100 minimum wage for workers in government-linked investment companies (GLICs).
Anwar also expressed concern over the gap between executive salaries and those of ordinary workers, referring to chief executives earning between RM70,000 and RM80,000 per month. He stressed the need for fairness, noting that the new civil service remuneration scheme grants larger percentage increases to lower-paid civil servants compared with their higher-earning counterparts.
Highlighting South Korea as an example, Anwar said the country’s productivity gains have been matched by corresponding salary increases, a contrast to Malaysia’s current situation. He acknowledged the challenge of balancing wage reforms with the need to maintain a favorable investment climate, advocating for dialogue and cooperation rather than heavy-handed legislation. “We need to discuss the issue amicably,” he said, adding that specific initiatives to address low wages would be unveiled in the upcoming Budget 2027, scheduled for tabling in Parliament on October 9.
In a separate announcement, Anwar ordered a review of the governance and management of UiTM Holdings following allegations of financial losses exceeding RM100 million. He directed the Prime Minister’s Department to assist the university’s vice-chancellor in conducting the review and encouraged collaborative efforts to improve the company’s performance.
The Prime Minister’s remarks reflect growing attention to wage inequality and economic inclusivity as Malaysia prepares its fiscal plan for the coming year.