The Malaysian Trades Union Congress (MTUC) has renewed calls for the government to raise Malaysia’s minimum wage to RM3,100 a month under Budget 2027.
MTUC secretary-general Kamarul Baharin Mansor said the proposed figure would serve as a more realistic “living wage” benchmark, especially as workers continue to face higher costs for food, housing, transport and other basic necessities.
Says RM1,700 is no longer enough
Malaysia’s current minimum wage stands at RM1,700, which took effect in February 2025.
Kamarul said the wage floor is due for another review by 2027 under the National Wages Consultative Council Act, which requires the rate to be reviewed at least once every two years.
He argued that delaying a new rate could put even more pressure on lower-income workers as living costs continue to rise.
MTUC also criticised situations where some workers remain on RM1,700 despite having years of experience, saying Malaysia needs a clearer salary progression structure instead of leaving long-serving workers stuck at the minimum rate.
Wants GLCs and GLICs to lead the way
MTUC also said government-linked companies and government-linked investment companies should set the example by offering better pay before the private sector is pushed to follow.
Kamarul said workers who help large companies generate strong profits should receive a fairer share of the benefits.
The government has already set RM3,100 as a living-wage benchmark for GLC and GLIC workers, which has added momentum to calls for the same figure to be considered more broadly.
Employers push back
Not everyone agrees with the proposal.
The Malaysian Employers Federation and Federation of Malaysian Manufacturers have warned that raising the minimum wage from RM1,700 to RM3,100 would amount to an 82.4% increase, which could be difficult for SMEs and smaller businesses to absorb.
Employer groups said higher wages should also take into account productivity, business affordability, inflation and competitiveness.
Govt has yet to decide
For now, no new minimum wage has been confirmed.
Human Resources Minister Datuk Seri R. Ramanan previously said the government is reviewing whether the current RM1,700 rate should be maintained or increased, but any change would require Cabinet approval.
With Budget 2027 set to be tabled on Oct 9, attention is now on whether Putrajaya will announce any changes to Malaysia’s minimum wage.
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