MORE than 27,000 workers across Malaysia have received pay increases under the Progressive Wage Policy (DGP) within its first 11 months, signalling growing confidence from employers in a skills- and productivity-based remuneration model.
Human Resources Minister Steven Sim Chee Keong said the latest figures demonstrate that the policy is increasingly embraced by both employers and employees, ranging from professional roles to machine operators.
“Statistics as of 17 November show that over 45 per cent of workers under this category have enjoyed wage increases of RM300 or more.
“Of that number, 22 per cent are youth, indicating that the DGP is capable of attracting and retaining young talent essential for national productivity,” Steven said during the DGP Stakeholder Engagement Session and Employer Appreciation Ceremony at The Light Hotel, Seberang Jaya, on Saturday.
The event was also attended by PERKESO Group Chief Executive Datuk Seri Dr Mohammed Azman Aziz Mohammed and Chief of PERKESO’s Employment Insurance System Office, Datuk Asri Ab Rahman.
Steven attributed rising employer participation to financial incentives provided monthly by PERKESO until 2027, as well as the guarantee of a more skilled, productive, and stable workforce.
“The voluntary and phased approach of the DGP allows employers, especially small and medium-sized enterprises, to implement it according to their capacity.
“Given current performance, the government encourages more employers to adopt the DGP as a strategic investment to enhance company competitiveness,” he said. “The DGP is not just an economic policy but a structural wage reform that ensures skill enhancements are matched with fair rewards.”
Over 250 employers from diverse sectors participated in the session, providing feedback directly to the government on challenges, opportunities, and improvements to the policy.
On another front, Steven emphasised the government’s firm stance against worker exploitation, whether involving local or foreign employees. Malaysia has received international recognition for its commitment to combat exploitative labour practices and safeguard workers’ rights.
“We are very strict on labour law enforcement. Malaysia ensures that exploitation does not occur, whether for local or foreign workers. There is no compromise,” he said.
He stressed that the Ministry monitors all aspects of worker welfare, including complaints, law enforcement, salary payments, and provision of adequate accommodation.
On the longstanding issue of withheld passports, Steven clarified that it falls under the jurisdiction of the Immigration Department but reiterated a zero-tolerance approach.
“Regarding passports, this is an old issue and we are very firm. It involves Immigration, but I am confident that colleagues in the Ministry of Home Affairs share the same stance as the Ministry of Human Resources — no compromise,” he said.
Steven concluded by affirming that all reports of worker exploitation will be thoroughly investigated and appropriate action taken. “If there are reports, we will take action,” he added - November 22, 2025
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