Malaysia’s government is reviewing the Minimum Wages Order 2024, which sets the monthly minimum wage at RM1,700, to determine if it continues to meet workers' needs amid shifts in the economy and cost of living [1]. Human Resources Minister Datuk Seri R. Ramanan said the review considers key indicators such as Poverty Line Income, median wage, Consumer Price Index, labor productivity, and unemployment rates [1].
Datuk Mohamed Shafie BP Mammal, president of the UNI Malaysian Labour Centre (UNI-MLC), emphasized that the wage level must reflect workers’ purchasing power to cover basic necessities including food, housing, transportation, and education. He said, "The issue of wages is not merely about a figure on a payslip. The more important question is what they can afford with that wage and whether it is sufficient for them to meet their families' basic needs" [1]. Shafie added that true worker welfare is about enabling a decent life through one’s own labor, not luxury [2].
Shafie also highlighted that the review does not mean an automatic increase in the minimum wage but offers a chance for the government, employers, and workers to evaluate whether the current rate remains suitable [1]. He warned that wages should allow for more than just basic necessities, including some capacity for savings, handling emergencies, and supporting children’s education [1, 2, 3].
The UNI-MLC expressed readiness to work with all relevant parties to ensure Malaysia’s national wage policy remains aligned with economic conditions and the realities faced by workers [2, 3]. Workers are described as key pillars of economic growth whose welfare must remain a priority in labor market policy [1, 2, 3].
On August 18, Minister Ramanan announced the review of the current RM1,700 minimum monthly wage [1]. The following day, Shafie reiterated the need to align minimum wages with the cost of living [1, 2, 3].
The government is expected to complete its assessment and decide on any wage adjustments in the coming months.
