KUALA LUMPUR — The review of the Minimum Wages Order 2024 must consider the rising cost of living to ensure workers’ incomes remain adequate to support themselves and their families, said UNI-Malaysia Labour Centre (UNI-MLC) president Datuk Mohamed Shafie BP Mammal.
He said increases in the cost of essential goods and services, including food, housing, transport and education, had placed greater pressure on workers’ purchasing power, especially those in the lower-income group.
“For workers, the issue of wages is not merely about a figure on their payslip. The more important question is what that wage can afford and whether it is enough for workers to meet their families’ basic needs,” he said.
Mohamed Shafie said the Government’s ongoing review was crucial in determining whether the current minimum wage remained relevant amid changing economic conditions and the realities faced by workers.
“When the cost of living changes, the real value of workers’ income also changes. That is why wage rates need to be reviewed from time to time so that workers’ welfare and purchasing power continue to be protected,” he said.
He said workers remained among the country’s key contributors to economic growth and development, adding that their well-being should be a major consideration in labour market policymaking.
Mohamed Shafie said workers should not be forced to spend almost their entire monthly income on essential expenses, leaving little financial flexibility for emergencies, their children’s education or savings.
“Workers go to work every day to build a better life for their families. They should not only be able to pay bills and buy food, but also have some room to save, maintain their health, fund their children’s education and deal with unexpected circumstances,” he said.
However, he stressed that a review of the minimum wage should not automatically lead to an increase in the rate.
Instead, he said the process should allow the Government, workers’ representatives and employers to evaluate relevant economic indicators before determining whether the current minimum wage remained suitable.
Mohamed Shafie said UNI-MLC was prepared to contribute its views and work with stakeholders throughout the review process to ensure Malaysia’s wage policy remained responsive to economic developments and workers’ needs.
The Government has also introduced measures to address wage disparities and improve the retention of skilled workers through reforms focused on enhancing job quality, productivity and skills development.
The Human Resources Ministry said the Progressive Wage Policy was among the initiatives aimed at ensuring wage growth was aligned with career progression while strengthening Malaysia’s labour market competitiveness.
The ministry said income inequality was one of the factors contributing to Malaysia’s brain drain, with TalentCorp research indicating that 94.5% of Malaysians working in Singapore were attracted by higher wages, while 88.8% expressed dissatisfaction with wages that did not match their skills. — August 19, 2026