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Malaysia announces wage hike

Published : Saturday, 10 October, 2026 at 8:26 AM

Observer Online Report

Malaysia has announced an increase in the minimum monthly wage for local and foreign workers from 1,700 ringgit to 2,000 ringgit, a move that could benefit more than four million migrant workers, including Bangladeshis.

Prime Minister and Finance Minister Anwar Ibrahim announced the decision while presenting the 2027 national budget in parliament on Friday, October 9, The New Straits Times reported.

The new minimum wage is expected to take effect in June next year.

Anwar proposed an expansionary budget of 459.8 billion ringgit ($112.48 billion) for 2027. In a nearly two-hour speech to parliament, he said the wage increase was part of the government’s efforts to address the rising cost of living and increase people’s incomes.

“Our question is not just how large we can build the economy, but whether its growth allows families to build savings, workers to earn more dignified wages, and small businesses to grow steadily,” Anwar said.

Under the new decision, the minimum monthly wage will increase by 300 ringgit, or around 17.65 percent from the current rate.

The increase is expected to provide workers with some relief in meeting daily expenses, including the costs of essential goods, rent and transportation.

A large number of Bangladeshi workers are employed in Malaysia’s construction, manufacturing, services and other sectors. Those covered by the relevant wage regulations could also benefit from the revised minimum wage.

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Editor : Iqbal Sobhan Chowdhury

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