MTUC wants RM3,100 minimum wage in 2027 budget

KUALA LUMPUR, 28 SEPTEMBER 2026 —

The Malaysian Trades Union Congress (MTUC) has urged the government to raise the statutory minimum wage to RM3,100 per month in the 2027 budget, arguing that current pay levels have not kept pace with productivity gains and corporate profitability.

In a statement, MTUC secretary‑general Kamarul Baharin Mansor said that workers who have helped generate large profits for big companies deserve a fairer share of the benefits. “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, urging government‑linked companies (GLCs) and government‑linked investment companies (GLICs) to lead the way in paying better wages before the private sector is pushed to follow.

Kamarul welcomed Prime Minister Anwar’s criticism of large corporations that continue to pay low wages despite posting huge profits. He noted that the prime minister’s remarks underscore the need for a wage floor that reflects the contribution of workers to corporate earnings.

Anwar, who also serves as finance minister, told Parliament last year that a total of 34 GLCs and GLICs have adopted the RM3,100 living‑wage policy, signalling a broader shift among state‑linked firms toward higher pay.

Since May 2025, six GLICs have set a minimum wage of RM3,100 for permanent employees as part of implementing a living‑wage policy. The six entities are Khazanah Nasional Bhd, Permodalan Nasional Bhd, the Employees Provident Fund (EPF), Retirement Fund Inc, the Armed Forces Fund Board and Lembaga Tabung Haji. Their adoption of the higher wage floor provides a benchmark that the MTUC hopes the government will codify in the national minimum‑wage framework.

The current statutory minimum wage stands at RM1,700 a month. Anwar has been reported to say that the RM1,700 floor should not be treated as the starting salary for skilled workers or graduates, implying that the minimum wage is intended as a baseline rather than a benchmark for all entry‑level positions. By contrast, the living‑wage policy applied by the six GLICs represents a higher threshold that the MTUC argues should become the national minimum.

The MTUC’s request for a RM3,100 minimum wage aligns with the prime minister’s stated intention to boost wage levels for private‑sector workers in line with growing productivity. Anwar has indicated that his administration will seek ways to negotiate with the private sector to raise wages in line with productivity levels, rather than threatening legal repercussions. This approach suggests a collaborative model in which the government, employers and unions work together to adjust pay structures.

Kamarul’s appeal also highlights the disparity between the remuneration of top management and that of rank‑and‑file employees. He warned that without a higher statutory floor, the benefits of corporate profitability will continue to accrue primarily to senior executives, leaving ordinary workers with “the scraps.” By calling on GLCs and GLICs to set the example, the MTUC hopes to create a ripple effect that encourages private‑sector firms to follow suit.

The push for a higher minimum wage comes at a time when Malaysia’s economy is navigating post‑pandemic recovery, rising productivity and a competitive regional labour market. While the source does not provide specific productivity figures, the MTUC’s argument rests on the premise that workers’ salaries have yet to keep pace with the gains in output and corporate earnings. The prime minister’s emphasis on productivity‑linked wage negotiations reinforces this narrative.

The MTUC’s demand, the prime minister’s statements and the living‑wage adoption by six GLICs together form a triangulation of policy signals that point toward a possible upward revision of the minimum wage in the 2027 budget. If the government adopts the RM3,100 floor, it would represent a near‑doubling of the current minimum and would bring the statutory level in line with the living‑wage standards already practiced by a subset of state‑linked entities.

The next step, according to the statements cited, will be the inclusion of the wage increase in the 2027 budget proposal, followed by negotiations with private‑sector employers to align pay with productivity. The MTUC’s call for GLCs and GLICs to lead the way suggests that the union will continue to monitor the implementation of the living‑wage policy and press for broader adoption across the economy.

Related: Anwar Ibrahim