Malaysia

Budget 2027 should address stagnant middle-income wages, says Tengku Zafrul

The senior political adviser to the prime minister said workers in this group could come under greater financial strain as the cost of living rises without a corresponding increase in their salaries.

Updated 1 hour ago · Published on 26 Sep 2026 5:58PM

Budget 2027 should address stagnant middle-income wages, says Tengku Zafrul
Tengku Zafrul explained this was important to ensure workers’ incomes continued to grow as living costs increased. - September 26, 2026

THE government should look beyond the minimum wage in Budget 2027 and find ways to raise the earnings of middle-income workers, particularly those making around RM2,000 a month, said Tengku Zafrul Abdul Aziz.

The senior political adviser to the prime minister said workers in this group could come under greater financial strain as the cost of living rises without a corresponding increase in their salaries.

He said companies that could afford to do so should review wages across their workforce, rather than focusing solely on workers earning the minimum wage.

“I have raised the issue of wages. Companies that can afford it should increase not only the wages of those at the minimum level, but also those in the middle-income group,” he said in an interview on the PodX Utusan Malaysia podcast yesterday.

Tengku Zafrul explained this was important to ensure workers’ incomes continued to grow as living costs increased.

The concern is reflected in recent World Bank data, which showed that Malaysia’s median monthly wage increased from RM1,300 in 2010 to RM1,864 in 2024.

Average wages rose from RM1,792 to RM2,570 over the same period.

That represented wage growth of about 43%, compared with an 82% increase in gross domestic product.

Tengku Zafrul also pointed to employee compensation, saying Malaysia had room to improve workers’ share of the economic gains.

Citing World Bank data, he said employee compensation in Malaysia stood at about 35%, which he considered relatively low compared with developed economies.

He cited the Philippines and Indonesia, where workers receive a 13th-month salary, as examples of how such arrangements could lift annual earnings.

“Workers at all levels, from the lowest to the middle and highest, receive 13 months’ salary. This puts pressure on companies to increase workers’ earnings,” he stressed.

However, Tengku Zafrul said wage increases could not be imposed without considering the ability of businesses to absorb higher costs.

Small and medium-sized enterprises and microbusinesses, in particular, would need to be taken into account, he said.

He added that higher wages should go hand in hand with productivity and company performance to avoid putting undue pressure on employers.

The Malaysian Trades Union Congress (MTUC) has also called for a structured wage system to cover middle-income workers.

Its secretary-general, Kamarul Baharin Mansor, said last month that a broader wage structure would help ensure pay reflected workers’ skills, education and experience, while helping companies attract and retain talent.

He also said the minimum wage was due for another review after it was raised to RM1,700 in February 2025.

Meanwhile, Tengku Zafrul said the government would also have to weigh the impact of geopolitical tensions, oil price fluctuations and other economic pressures when drawing up Budget 2027.

The challenge, he said, was to ease the burden on households without placing businesses under unsustainable pressure.

“We need to think outside the box in this crisis because whatever we do must have an impact on the people,” he added.

Budget 2027 is scheduled to be tabled by Prime Minister and Finance Minister Anwar Ibrahim on October 9. – September 26, 2026

Related News

Malaysia / 1d

Negeri Sembilan MB must name who allegedly forced him to sign proclamation – Tengku Zafrul

Community / 3w

Penang authorities seal transit home units, occupants appeal for leniency

Malaysia / 3w

Child malnutrition needs urgent action, says Charles Santiago

Malaysia / 4w

Saravanan urges Anwar to halt MACC probe, claims allegations baseless

Opinion / 1mth

ASEAN leads global shift in workplace AI adoption, with Malaysia poised for gains

Malaysia / 2mth

Tengku Zafrul: ‘PH to continue expanding economic growth in Negeri’

Spotlight

Malaysia

73-year-old loses RM80,000 in ‘mystical money’ scam

Malaysia

Masidi urges calm over reports of US military base near Sabah

Malaysia

Anwar cautions against any move to remove Negeri Sembilan ruler

Malaysia

Form two student dies after being found unconscious at Kuala Pilah school hostel

Malaysia

NGOs reaffirm support for Tuanku Muhriz amid Negeri Sembilan crisis

Malaysia

MACC orders Saravanan, wife, and three children to declare assets

Malaysia

PKR warns supporters over AI-generated political posters

Family mourns unexpected loss after Anwar’s elder brother passes away in his sleep

You may be interested

Malaysia

NGOs reaffirm support for Tuanku Muhriz amid Negeri Sembilan crisis

Malaysia

Masidi urges calm over reports of US military base near Sabah

Malaysia

Rais Yatim arrives at court; expected to be charged under Sedition Act

Malaysia

Malaysia-China ties gain new economic momentum with RM28.6b investment potential

Malaysia

EC to set Melaka poll dates on Oct 7

Malaysia

Oct 23 ruling on bid to restrain bank from closing Maritime Network accounts

Malaysia

Two students charged over alleged tahfiz bullying

Malaysia

Four Sarawak areas record unhealthy air, Serian hits 179