MTUC wants RM3,100 minimum wage in 2027 budget

The Malaysian Trades Union Congress (MTUC) has called for the minimum wage to be raised to RM3,100 under the 2027 budget, saying current workers’ salaries have yet to keep pace with productivity and company profits.

MTUC secretary-general Kamarul Baharin Mansor also called for government- linked companies (GLC) and government-linked investment companies (GLICs) to lead the way in paying better wages before the private sector is pushed to do the same.

“Fair wages must start with GLCs and GLICs. It should not be only the top management that benefits while workers at the bottom are left with the scraps,” he said in a statement.

Kamarul welcomed Prime Minister Anwar Ibrahim’s criticism of large corporations that continued paying low wages despite making huge profits, saying workers who helped generate those profits deserved a fairer share.

Yesterday, Anwar said the 2027 budget will include measures aimed at boosting the wage levels for workers in the private sector in line with growing productivity.

Anwar, who is also finance minister, 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.

Since May 2025, six GLICs have set a minimum wage of RM3,100 for permanent employees as part of implementing a living wage policy. They are Khazanah Nasional Bhd, Permodalan Nasional Bhd, EPF, Retirement Fund Inc, the Armed Forces Fund Board and Lembaga Tabung Haji.

Anwar told Parliament last year that a total of 34 GLCs and GLICs have adopted the RM3,100 living wage policy.

The current minimum wage is RM1,700 a month.

The prime minister was also reported to have said that the RM1,700 minimum wage should not be treated as the starting salary for skilled workers or graduates.