KUALA LUMPUR, October 18 – In a significant move to enhance the livelihoods of Malaysian workers, the government has announced an increase in the minimum wage from RM1,500 to RM1,700 per month, effective February 1, 2025. This decision, unveiled as part of the broader RM421 billion federal budget for 2025, reflects a substantial increase from the previous year and aims to improve the financial well-being of workers amid rising living costs.
Prime Minister Anwar Ibrahim emphasized that the nation’s economic reforms cannot be considered successful until citizens experience tangible benefits through higher incomes. The new minimum wage is a crucial step towards addressing the escalating cost of living and improving the standard of living for workers across the country.
In addition to the minimum wage adjustment, the Ministry of Human Resources will publish guidelines for starting salaries across various job sectors. For example, starting salaries for positions such as Industrial and Production Technicians will be set at RM2,290, Mechanical Engineers at RM3,380, and Creative Content Designers at RM2,985.
Recognizing the challenges faced by small businesses, the government has decided to defer the implementation of the new minimum wage for employers with fewer than five employees. These businesses will have an additional six months, until August 1, 2025, to comply with the increased wage rate, striking a balance between ensuring fair compensation for workers and supporting smaller enterprises.
The 2025 budget allocates RM335 billion, or 79.6%, for operational expenses and RM86 billion for development projects. The budget’s focus on social welfare initiatives, including the minimum wage increase, underscores the government’s commitment to fostering economic growth while ensuring that the benefits are equitably distributed among the populace.
