Minimum wage rise to work alongside household support measures, says Amir Hamzah
Budget 2027 raises the monthly minimum wage to RM2,000 from June 2027, with more than four million workers set to benefit.
Malaysia’s wage increases need to be considered together with targeted aid, subsidy changes and healthcare support, Finance Minister II Datuk Seri Amir Hamzah Azizan said, as the government seeks to turn higher earnings into better household well-being.
Writing on LinkedIn about views he had shared on a financial podcast, Amir Hamzah said the policies were intended to balance one another rather than deliver gains independently. He identified economic sustainability and social cohesion as the government’s two main objectives.
Under Budget 2027, the monthly wage floor will rise to RM2,000 from RM1,700 in June 2027, benefiting more than four million workers. Sumbangan Asas Rahmah (Sara) coverage has also expanded to nearly 13 million Malaysians, including those in the M40 group.
Funding for Sumbangan Tunai Rahmah (STR) and Sara will rise to RM16 billion in 2027. Monthly Sara payments will increase to RM150, equivalent to RM1,800 annually. By Oct 22, STR recipients had received RM3.6 billion across three payment phases, while combined STR and Sara disbursements totalled nearly RM12 billion.
The government plans to introduce MediAsas in late January 2027 as an affordable insurance and takaful option for medical coverage. Another RM200 million has been allocated for outsourced patient treatment programmes aimed at shortening waiting times.
Amir Hamzah said postponing difficult fiscal, subsidy and revenue decisions would burden future generations. He also warned that an unchecked widening of income inequality could create deeper social problems.
