Kuala Lumpur, Malaysia, 28 July 2026 – Malaysia’s wage growth has lagged productivity, intensifying calls for a review of how pay is set and how minimum-wage increases flow through higher income levels. The issue is becoming central to the country’s ambition to create a high-income economy that delivers visible gains to households rather than growth confined to headline statistics.
Bank Negara Malaysia’s deputy governor said the wage-setting system needs closer examination because adjustments at the bottom do not automatically lift salaries further up the scale. This can produce wage compression, leaving qualified professionals with entry pay uncomfortably close to the statutory minimum.
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