Malaysia to raise monthly minimum wage to RM2,000 from June 2027
More than four million workers will benefit, while MSMEs whose annual sales fall below RM50 million will be exempted.
Human Resources Minister Datuk Seri R Ramanan said Malaysia’s wage floor would move from RM1,700 to RM2,000 a month beginning June 2027. The increase will benefit more than four million workers.
The exemption covers micro, small and medium enterprises, or MSMEs, whose annual sales are below RM50 million. Ramanan said this would give them time to adapt their business models. He also said the government had introduced a separate monthly minimum of RM2,500 covering new graduates and semi-skilled jobs, with implementation arrangements to be explained by the Ministry of Human Resources (Kesuma).
Prime Minister Datuk Seri Anwar Ibrahim announced the measures at the Oct 9 tabling of Budget 2027, alongside initiatives covering gig-worker welfare and industry-related training.
Ramanan said financing of RM160 million, jointly provided by Grab and the government, would support better net earnings and welfare for e-hailing and p-hailing workers from 2027. E-hailing drivers’ median net earnings are expected to gain up to RM227 monthly; p-hailing delivery riders’ earnings are expected to increase by up to RM100 monthly.
Negotiations at the Gig Consultative Council concern an income formula, minimum income rates and social protection standards for gig workers. Ramanan said the details were expected to be finalised in early 2027.
For skills development, he said the allocation across ministries for technical and vocational education and training (TVET) was RM8 billion. HRD Corp would support three million training opportunities using levy funds of RM3 billion.
The Skills Development Fund Corporation (PTPK) has allocated RM500 million for trainees at registered skills-training institutions, both public and private. Another allocation, exceeding RM40 million through HRD Corp, will fund elderly care training for 8,000 Malaysians.
