Budget 2027: Technology adoption, business growth key to higher wages, says minister

Economy Minister Akmal Nasrullah Mohd Nasir said efforts to raise productivity to support wage growth must involve not only employees but also the capabilities of employers. — Bernama pic

First Published: Wednesday, 14 Oct 2026 9:35 AM MYT

KUALA LUMPUR, Oct 14 — The adoption of technology and business scaling can boost company productivity and enhance the ability to share the gains of growth with employees through wage increases, said Economy Minister Akmal Nasrullah Mohd Nasir.

He noted that efforts to raise productivity to support wage growth must involve not only employees but also the capabilities of employers.

“The current wage increases must be balanced with productivity, not only at the level of the workers themselves but also among employers,” he told Bernama after appearing as a guest on the Bernama TV programme Ruang Bicara, titled “Budget 2027: Quality Economic Growth, Prosperous People” yesterday evening.

Akmal Nasrullah said the adoption of technology and financing that supports business scaling are among the ways to strengthen the capabilities of micro, small and medium enterprises (MSMEs).

“When we speak of the capabilities of MSMEs, we certainly hope they will continue to strengthen their businesses.

“As that scaling-up occurs more effectively and comprehensively, they will be able to share a portion of the growth proceeds with their workers,” he said.

Regarding the sectors targeted for productivity improvements to support wage increases, he said the manufacturing sector needs to move towards more comprehensive technology adoption, rather than relying on low-cost labour, including foreign workers.

He said the initiative aligns with the 13th Malaysia Plan target of reducing reliance on foreign workers from 15 per cent to 10 per cent by the end of the plan period.

“Such sectors certainly need continued encouragement to further enhance their productivity and capabilities,” he said.

According to Akmal Nasrullah, the use of energy-efficient machinery or equipment is also a method for reducing company operating costs.

He noted that government matching grants are available for conducting energy efficiency audits, while details regarding specific funds for technology adoption and productivity enhancement fall under the purview of the relevant ministries. — Bernama