‘Income first’: Economy Minister Akmal says Budget 2027 must deliver better wages for Malaysians

Economy Minister Akmal Nasrullah Mohd Nasir said this was necessary to ensure that gains in productivity and Malaysia’s position in the supply chain translate into better job opportunities and more meaningful wages. — Bernama pic

First Published: Thursday, 24 Sep 2026 3:57 PM MYT

GEORGE TOWN, Sept 24 — Income and wages must remain a priority in the planning of Budget 2027, alongside efforts to strengthen the capabilities of local companies in high-growth, high-value (HGHV) industries.

Economy Minister Akmal Nasrullah Mohd Nasir said this was necessary to ensure that gains in productivity and Malaysia’s position in the supply chain translate into better job opportunities and more meaningful wages.

“That is why we believe the time has come for discussions on income and wages to remain a priority.

“As we plan Budget 2027, the issue of income must also go hand in hand with the capabilities of companies,” he told reporters after the ‘KL20@Penang 2026: Silicon Surge’ programme at the Penang Waterfront Convention Centre (PWCC).

Akmal said the allocation to Penang for the development of the National Automation, Testing and Equipment (ATE) Campus in Batu Kawan was also part of the government’s efforts to strengthen local companies’ capabilities, thereby creating better job opportunities and more meaningful wages for Malaysians.

He said the federal government had allocated RM25 million under the 13th Malaysia Plan (13MP) for the construction of the campus, aimed at strengthening the state’s semiconductor ecosystem.

Meanwhile, he said persistently high oil prices and an uncertain outlook should also be taken into account in Budget 2027 to ensure the country’s development and the people’s economic well-being remain protected.

“In terms of the announcements or the Budget to be tabled soon, I expect these to be among the issues that the Finance Minister will focus on, so that despite oil prices remaining high and the outlook being uncertain, the country can continue planning for development and the people’s well-being,” he said.

Meanwhile, Penang Chief Minister Chow Kon Yeow said the state government would provide land in Batu Kawan for the development of the ATE campus.

He said the initiative followed the state’s efforts to strengthen the chip design sector through Penang Silicon Design @ 5KM+, which was launched two years ago.

He said that, in addition to the ATE Campus, Penang had established a RM50 million technology fund as an initial measure to help start-ups and companies seeking to scale up gain access to capital.

“We hope this fund will grow with the participation of parties beyond Penang, creating a fund that start-ups and companies in Penang and across Malaysia can access for the capital they need to move to the next stage,” he said.

Chow said the ATE campus would serve as a platform for talent development, technology qualification and joint development, testing and deployment of Malaysian-made ATE solutions. — Bernama