By the time this article is published, the 2027 national budget announcement may be well over. Regardless, this needs to be said, given its huge relevance. In said budget, the government must strictly implement a living wage across all sectors and for both local and migrant workers.
Concerns by employers’ associations and the business class about how wage increases will hurt the MSME sector in particular and force businesses to relocate must no longer impede pro-people policies. Malaysia has previously increased the minimum wage several times, yet these very concerns have repeatedly failed to materialise.
If wage increases further burden MSMEs, then the government must increase them regardless, while simultaneously providing targeted assistance towards such enterprises for a certain period to help them transition to higher wages.
Next, both Malaysian and migrant workers must be equal recipients of minimum wage increases. If migrant workers are exempt, then employers will surely prioritize hiring them over local workers as they are cheaper labour source.
This will hurt average Malaysians in terms of job opportunities and decent wages, as employers are highly likely to offer the same low wages they offer migrant workers.
It’s already bad enough that business groups are pushing for greater access to foreign workers to make up their workforce, instead of prioritizing local Malaysians. Frankly, this heavy dependence on foreign labour needs to end as soon as possible. Businesses in Malaysia must mainly hire Malaysians.
Over the past few decades, the cost of living as well as the country’s GDP has greatly risen, yet workers’ wages continue to lag far behind. The inequality in profit distribution between workers and employers has also expanded. All this is a betrayal to our local workforce.
The government must not just increase the minimum wage in the 2027 budget, but implement a living wage and ensure strict compliance. Tight regulation must be applied to ensure business profits are distributed more fairly to workers as well.
Employers’ associations and the business class may continue warning against wage increases, but if Malaysians don’t receive a truly fair income, then how are they supposed to afford the very products and services sold by these businesses in the first place?
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