Beyond minimum wage, Malaysia needs clearer wage ladders tied to productivity, says Akmal Nasrullah

Economy Minister Akmal Nasrullah Mohd Nasir said the wage difference between low- and semi-skilled workers had narrowed from RM550 in 2016 to RM396 in 2024. . — Picture by Yusof Isa

By Dhesegaan Bala Krishnan

First Published: Tuesday, 22 Sep 2026 11:09 AM MYT

PUTRAJAYA, Sept 22 — Wage compression is hindering working Malaysians from receiving proper compensation despite the narrowing wage gap between low- and semi-skilled workers in Malaysia, Economy Minister Akmal Nasrullah Mohd Nasir said today.

Citing a recent Bank Negara report, Akmal Nasrullah said the wage difference between low- and semi-skilled workers had narrowed from RM550 in 2016 to RM396 in 2024.

“This means the wage is moving (upwards) at the minimum wage level but comparatively, it is not progressing as well in the successive levels,” he said during the ministry’s monthly assembly at the Putrajaya International Convention Centre (PICC) today.

As such, he said raising the floor wage was only a starting point and the ministry must develop clearer wage ladders that keep pace with productivity.

Akmal Nasrullah also pointed out that only four states and federal territories had surpassed the national median monthly wage of RM2,940, namely Penang, Selangor, Kuala Lumpur and Putrajaya.

The ministry, he said, had decided to allocate higher development allocations to six states and territories — Kedah, Perlis, Kelantan, Terengganu, Sabah and Sarawak — to support them in also crossing the RM2,940 mark.

While noting that Malaysia’s inflation remained moderate at 1.9 per cent, Akmal Nasrullah said managing cost-of-living pressures was essential for working Malaysians to benefit from salary progressions.

Malaysia last raised the minimum wage from RM1,500 to RM1,700 per month in August 2025 and seeks to scale it up to RM3,000 per month by 2030 under the 13th Malaysia Plan (13MP).