Budget 2027 should respond to Malaysia’s low wages, says ex-MP

A former MP today said that the 2027 budget should respond to Malaysia’s low wages and the fact that Malaysians are not experiencing the benefits of economic growth.

Citing a study by independent research centre Khazanah Research Institute, DAP’s Charles Santiago said 70% of Malaysians were not feeling the effects of economic growth.

He also referred to numbers from the statistics department which revealed that two in three Malaysian wage earners work in semi- or low-skilled occupations, with median wages of just RM2,223 and RM1,758.

Even if Malaysia’s gross domestic product, gross national income and foreign direct investment increased, Santiago said the public would not experience prosperity if wages failed to keep up with the cost of living.

“The economy may be growing. Their household isn’t necessarily getting better.

“This is the question that Budget 2027 must answer: when will economic growth finally translate into stronger household incomes and security?” Santiago, who was Klang MP for three terms, said in a post on X.

He also called for a serious wage strategy, stronger social protection and action on the cost of living, “not another one-off measure or announcement”.

He said the country should “stop pretending” that one-off cash assistance could solve a structural affordability crisis.

“Oct 9 should be about putting household prosperity at the centre of economic policy,” he said, referring to the date when the national budget will be tabled.

On Aug 23, communications minister and government spokesman Fahmi Fadzil said that Budget 2027 would prioritise measures to ease rising living costs.

Fahmi said the budget’s preparation would take into account various factors, including global crude oil prices.