PM slams big companies making huge profits but pay low wages

The 2027 budget will include measures aimed at boosting the wage levels for workers in the private sector, says Prime Minister Anwar Ibrahim.

Anwar, who is also the finance minister, expressed dissatisfaction with certain large private firms keeping their wages low despite recording high profits over the years.

“I once did a study about productivity and wages. In Korea, when productivity is high, wages are also high. They rise according to the wage rate.

“In Malaysia, productivity continues to grow, but the wage rate remains very low.

“I agree with the notion that sterner action is required. God-willing, I will announce them in the budget,” he said at a gathering of Universiti Teknologi Mara alumni at the university’s campus here today.

Nonetheless, Anwar said his administration will seek ways to negotiate with the private sector to raise wages in line with productivity levels, rather than threatening legal repercussions.

“We cannot use the law to force companies to raise wages. Otherwise, they might shutter their operations and move to other countries. So we must negotiate well with them,” he said.

Anwar also said efforts to strengthen the Bumiputera agenda were among the main focus of the 2027 federal budget.

He believed that championing the Bumiputera agenda could go hand-in-hand with social justice efforts and not infringe on the welfare and security of non-Bumiputera citizens.