THE country’s middle-income or M40 group has yet to fully benefit from economic growth, with many still grappling with rising living costs, according to Bank Negara Malaysia governor Datuk Seri Abdul Rasheed Ghaffour.
Citing a report by Berita Harian, he said stagnant wages among this group underscore the need for structural labour market reforms aimed at creating higher-value employment opportunities with better pay.
“The government’s main focus is to create high-value jobs that can offer better wages,” he was quoted as saying.
“When the economy shifts towards higher value-added activities, it requires new skills. These types of jobs will automatically offer more attractive income packages compared to low-skilled work.
“When we are able to create more high-quality jobs, this will encourage the entire economy to move together,” he reportedly added.
Abdul Rasheed also encouraged members of the M40 group to reskill and upskill in order to access higher-value roles with improved remuneration.
He further noted that increases in the minimum wage are expected to gradually influence broader salary structures over a period of two to three years, exerting upward pressure on wages across other sectors.
However, he cautioned that wage growth must be supported by corresponding gains in productivity, warning that increases in pay without improvements in productivity could contribute to inflationary pressures.
“Labour market reform is a long-term agenda. However, it is one of the critical steps to ensure the M40 group can enjoy a better standard of living in the future,” he said. - March 20, 2026
