KUALA LUMPUR: Higher wages under Budget 2027 will require productivity gains, business investment and technology adoption to sustain competitiveness and create better jobs, according to CIMB Treasury and Markets Research.
In a note, the research house said beyond statutory wage increases, reviewing wider pay structures and offering competitive remuneration and career opportunities will be important to attract and retain skilled talent as businesses move into higher-value activities.
“Sustaining wage growth, however, will depend on corresponding improvements in productivity through investment in skills, equipment and business processes.”
The minimum wage hike has an exemption for micro, small and medium enterprises with annual sales below RM50mil.
Government-linked investment firms and government-linked firms also committed to raising their living wage benchmark to RM3,400 per month. — Bernama
