Prime Minister Anwar Ibrahim signals stronger wage measures in Budget 2027, calling for fairer bonuses and better pay as productivity rises.
SHAH ALAM: Prime Minister Datuk Seri Anwar Ibrahim has signalled stronger measures to boost workers’ wages in the upcoming Budget 2027.
He said the government had progressively raised the minimum wage from RM1,200 to RM1,500 and subsequently RM1,700, with the latest increase aimed at improving the incomes of lower-paid workers.
“We have set a new benchmark for government-linked companies, a minimum salary of RM3,100, with the hope that the private sector will increase wages as well.
“I am at the final stage of the Budget, and I will certainly address this issue more seriously,” he said during a dialogue session at the Himpunan Mesra Alumni UiTM Bersama Perdana Menteri here today.
He also urged large companies making substantial profits to do more to raise workers’ wages, saying wage growth should keep pace with productivity.
Anwar said while he understood that smaller businesses, particularly restaurants, faced greater challenges in increasing wages, large corporations should have greater capacity to improve workers’ pay.
“I understand that in restaurants and small businesses, giving wage increases is not easy.
“But there are big companies in this country making substantial profits, yet when it comes to increasing workers’ wages, it is very difficult.
“This is one of the problems with the capitalist system that we have,” he said.
Anwar said Malaysia also needed to address the disparity between rising productivity and wage growth, noting that workers should benefit when companies and the economy perform well.
“I learned a long time ago about the relationship between productivity and wages. In South Korea, productivity is high and wages have risen accordingly.
“In Malaysia, productivity continues to increase, but wages have not risen at the same pace,” he said.
He said the government would therefore need to use legislation and policy measures to strengthen the wage floor, while taking into account concerns that companies could relocate their operations to lower-cost countries.
“But I agree that there must be a stronger floor,” he said.
Anwar also said the government was working to “raise the ceiling” by attracting high-value investments from multinational companies while ensuring Malaysia had the skilled workforce needed to support such industries.
Anwar also touched on executive remuneration, saying he was not opposed to chief executive officers receiving high salaries but believed there should be greater fairness in the distribution of bonuses.
“If the CEO gets an eight-month bonus while the workers get two months, I do not agree.
“If the bonus is three months, the CEO should get three months, and the worker, even the person collecting rubbish, should also get three months,” he said.
He said the disparity in basic salaries already reflected differences in responsibility and position.
“If the CEO earns RM40,000 while the cleaner earns RM2,000, there is already a significant difference in their salaries,” he said.
Anwar also highlighted changes to the public service remuneration system, saying lower-paid civil servants had received larger percentage increases under the new scheme.
“Previously, the senior levels could receive a 15% increase while those at the lower levels received only around 3%.
“Under the new salary scheme, those at the lower end received increases of up to 30%, with a minimum of 15%, while those at the highest levels received around 7%. That is fair. That is justice,” he said.
He said the principle of justice should also guide government policy in areas such as education, stressing that equal treatment did not always produce equitable outcomes.
“Justice is not equality. Justice does not mean giving everyone exactly the same treatment. It means giving people fair treatment according to their circumstances,” he said.
On education funding, Anwar said the government would continue supporting schools serving different communities, including Tamil and Chinese schools.
“What I want is to maintain harmony in this country. Providing assistance to Tamil schools and Chinese schools is part of maintaining harmony in Malaysia,” he said.
