Is RM3,000 minimum wage realistic target, asks ex-MP

Is RM3,000 minimum wage realistic target, asks ex-MP

Charles Santiago pointed out that the minimum wage in 2025 only stood at RM1,700.

Charles Santiago
Former Klang MP Charles Santiago said wage growth has lagged behind actual living costs.
PETALING JAYA:
A former MP has questioned whether the RM3,000 minimum wage and RM3,500 median wage target which the country hopes to achieve by 2030 is realistic or whether it is an “ambitious headline”.

Former Klang MP Charles Santiago pointed out that Malaysia introduced the minimum wage in 2013, which only reached RM1,700 by last year.

However, he said, Bank Negara Malaysia’s 2018 living wage estimate for a single adult in Kuala Lumpur was already RM2,700.

“The gap itself says a lot about how wage growth has lagged behind actual living costs,” he said in a post on X.

Santiago said the median wage reflects the condition of the average Malaysian worker.

“If the median remains weak, it suggests that large parts of society are still unable to meaningfully benefit from the country’s economic upgrading,” he said.

He said the issue is not just the wages, but how economic gains are distributed.

Malaysia’s compensation of employees remains at about 33% of the gross domestic product, while the 13th Malaysia Plan target is 40% by 2030.

“That gap says a lot about who is, and isn’t, fully benefitting from growth,” Santiago said.

Last Saturday, the government said the country was targeting a minimum wage of RM3,000 by 2030 as part of broader labour reforms under the 13MP and reducing dependence on low-skilled jobs.

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