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MAJOR corporations in Malaysia have been urged to strengthen employee welfare, particularly in wages and workplace protection, as the government intensifies its call for fairer distribution of economic gains alongside continued national growth.
Communications Minister Datuk Fahmi Fadzil said companies should review and enhance support systems for workers in a manner that improves welfare without compromising business profitability.
“I hope large companies can look into what support assistance, especially in terms of salaries and protection for workers, can be improved, and without affecting the profits obtained through the hard work of the workers themselves,” he said.
He was speaking to reporters on the sidelines of the Labour Day 2026 celebration on Friday, where broader issues of wage fairness and labour protection were also highlighted.
Fahmi also welcomed the Prime Minister Datuk Seri Anwar Ibrahim’s announcement of the Economic Resilience Package 2026, known as Progressive Acceleration for Capability and Employment (PACE), valued at over RM710 million.
The initiative aims to strengthen employability, workforce readiness and labour market resilience through agencies including the Social Security Organisation (PERKESO) and TalentCorp.
He noted that the programme is particularly timely as Malaysia’s unemployment rate stands at 2.9 per cent, the lowest in more than a decade, while also addressing risks of job displacement through retraining and upskilling initiatives.
In a separate and strongly worded Labour Day address, Anwar earlier reiterated his call for large corporations and conglomerates to ensure that worker welfare is not sidelined amid strong corporate earnings.
He pointed to the country’s previous implementation of a RM3,000 minimum wage policy as evidence that firms are capable of absorbing higher labour costs while maintaining profitability, including government-linked companies.
“Today I want to repeat and emphasise what I have been saying every year. I want employers to listen, wealthy companies and large conglomerates to listen carefully.
“This country must be peaceful, this country must develop and progress. This country must ensure the comfort of the rich and the merchants, but it must also ensure that the fate of workers is safeguarded, this is the most important,” he stressed.
Anwar questioned why some of the country’s top companies, despite recording billions in profits, remain reluctant to implement even modest wage increases for workers.
“We list how many large companies there are in our country, making profits of RM1 billion to RM2 billion, but increasing workers’ salaries by even RM40 is difficult, how can this be?” he said.
He stressed that while Malaysia continues to record strong economic indicators, including high investment inflows, low unemployment and strong performance of the ringgit, attention must also remain focused on the welfare of lower-income workers.
Anwar further argued that national stability and economic success are built on the contributions of workers across all sectors, including security personnel, civil servants, factory workers, and lower-income service workers.
He urged the private sector to adopt a stronger sense of moral responsibility in ensuring fairer economic distribution, adding that while legal enforcement of wage increases is complex, companies should act out of “conscience and compassion”.
“I would like to urge company representatives to reflect together. We want workers to be disciplined and highly productive; that is everyone’s responsibility at all levels.
“We want this country to be clean, so sweepers and cleaners also play a major role. So can we ask whether they are given sufficient attention and fairness?” he said.
Anwar stressed that the push for better wages and worker protection would not undermine Malaysia’s competitiveness, but would instead reinforce the principles of inclusivity under the MADANI economic framework.
“I am not proposing rewards that would cause us to lose competitiveness. I am only suggesting that national leaders and corporate leaders be more attentive and show compassion. If we want to maintain this country as peaceful and inclusive, it must have a soul,” he said. - May 1, 2026
