KUALA LUMPUR: Oct 10, 2026 – The Federal Government has agreed to raise the national minimum wage from RM1,700 to RM2,000 a month, to be fully enforced from June 2027.
Prime Minister Datuk Seri Anwar Ibrahim, when tabling Budget 2027 in the Dewan Rakyat yesterday, explained that the move was taken to narrow the gap between productivity and workers’ wages, which remains unbalanced.
He stressed that the cost-of-living burden weighing on the people arose because workers’ incomes were not rising in line with the increase in goods prices.
“The cost-of-living burden arises because the people’s income is not increasing in line with the rise in goods prices. Therefore, the government agrees to raise the minimum wage rate,” he said. The new rate is RM2,000 a month, compared with RM1,700 previously.
However, Anwar explained that micro, small and medium enterprises (MSMEs) recording annual sales revenue below RM50 million will be exempted from this enforcement.
The exemption is aimed at giving the operators sufficient space and time to adjust their business models.
He added that the implementation of the new rate is expected to have a direct welfare impact on more than four million workers nationwide.
