Government confident of 2030 workers’ compensation target
Workers’ compensation accounted for 33.9% of GDP in 2025, while the government aims for 40% by 2030.
Malaysia’s goal for workers’ compensation to reach 40% of gross domestic product (GDP) in 2030 remains achievable, according to Deputy Economy Minister Datuk Mohd Shahar Abdullah. Addressing the Dewan Rakyat on Oct 8, he linked the target to the aspirations of the 13th Malaysia Plan (13MP).
Mohd Shahar put the 2025 share at 33.9%, against 33.6% in 2024 — a rise of 0.3 percentage point. He also said the government remained on course for its benchmark wage target of RM3,500.
To increase compensation, he said the Economy Ministry would accelerate economic restructuring towards higher-value activities. The shift would be driven by innovation and digitalisation, alongside advanced technologies and knowledge-intensive activities, creating more skilled jobs with higher wages, he said.
He said more high-quality investment opportunities would be attracted through the New Industrial Master Plan (NIMP) 2030, National Semiconductor Strategy (NSS) and National Energy Transition Roadmap (NETR).
Extending coverage of the Progressive Wage Policy to strategic sectors would also be considered, Mohd Shahar said, with the aim of keeping wage increases aligned with productivity growth. He was answering Mohd Syahir Che Sulaiman (Perikatan Nasional-Bachok), who asked how the government intended to achieve the compensation target while ensuring wages kept pace with productivity.
