The government is prepared to review the national minimum wage and consider raising it beyond RM1,700 once Malaysia’s economic performance strengthens. Prime Minister Datuk Seri Anwar Ibrahim said the current rate still falls short of covering basic expenses for many workers.

He explained that the minimum wage has been raised gradually over the years. It increased from RM1,200 to RM1,500, before being adjusted again to RM1,700 last year. He added that further increases can be considered when the country’s economy is stable enough to support it.

This statement was made during the PMX Townhall session with youth in Inanam, Sabah, where a student highlighted that the minimum wage has not been fully implemented in some parts of Sabah.

How Minimum Wage Works In Malaysia

Malaysia’s minimum wage is reviewed from time to time by the government. These reviews consider factors such as the cost of living, business conditions, and the overall health of the economy. When a new rate is approved, it is announced through an official wage order and rolled out in stages so employers have time to adjust.

The current minimum wage of RM1,700 is part of this process. It applies to most workers, although some sectors and small businesses were given additional time to implement the new rate.

Why Minimum Wage Matters For Workers

For many households, the minimum wage is the foundation of their monthly income. Basic expenses such as rent, food, transport, and utilities have continued to increase, especially in urban areas.

Anwar explained that the government recognises these pressures. He pointed out that several government-linked companies, including Petronas, government-owned banks, Telekom Malaysia, and Tenaga Nasional, already set higher internal wage floors of RM3,100 for their employees. He said this reflects the standard of worker welfare the government hopes to encourage more widely.

He also noted that public sector salaries were raised by up to 30 per cent in a previous adjustment to help civil servants manage rising living costs.

Sabah’s Wage Situation Under Review

The prime minister acknowledged that certain sectors in Sabah were granted temporary exemptions from the latest minimum wage increase. These exemptions were introduced to help specific industries adjust gradually due to differences in operating costs and economic structures.

However, he agreed that the situation needs continued attention. He said the government is open to reviewing these exemptions to ensure that workers in Sabah are not left behind as Malaysia moves towards fairer and more consistent wage standards.

What A Future Increase Depends On

Although the government is willing to raise the minimum wage again, Anwar said this will only be done when the country’s economic conditions support it. This includes factors such as economic growth, business performance, and the country’s ability to maintain job opportunities while improving earnings for workers.

He emphasised that the goal is to reach a wage level that better reflects current living costs, without placing excessive pressure on employers or risking job losses.

Monitoring The Wage Policy Going Forward

For now, the RM1,700 minimum wage remains the national standard. The government will continue monitoring the economy and may review the rate again in the future.

Anwar said the priority is to ensure all workers, including those in Sabah and other regions, receive wages that support their basic needs and long-term wellbeing.

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