Budget 2027: Minimum wage to rise to RM2,000 from June 2027 – Anwar

MINIMUM wages will be increased from RM1,700 to RM2,000 effective June 2027, a move expected to benefit more than four million workers.

Finance Minister Datuk Seri Anwar Ibrahim, when tabling Budget 2027 in the Dewan Rakyat today, said the increase aimed to narrow the gap between productivity and workers’ wages amid rising living costs.

He said workers’ incomes had not kept pace with rising prices, while employee compensation accounted for only 33.9% of Malaysia’s gross domestic product (GDP).

Small and medium-sized enterprises (SMEs) with annual sales below RM50 million would be exempt from the new minimum wage requirement to give them time to adjust their business models, he added. – October 9, 2026