SHAH ALAM: The widening gap between corporate profits and workers’ wages will be among the issues addressed in the upcoming Budget 2027, says Datuk Seri Anwar Ibrahim.
The Prime Minister said it was unacceptable for companies to make billions of ringgit in profits while their workers continued to earn low wages, stressing that economic growth must benefit those at the lower end of the income scale.
“If productivity is soaring and companies are making billions in profits, but workers are still earning RM1,700, then we have not raised the floor,” he said.
“But for graduates’ salaries, where are they going? They cannot find proper jobs, and everyone ends up doing e-hailing work, with an uncertain future.
“That is a responsibility we must think about together.”
Speaking at a UiTM alumni gathering here on Saturday (Sept 26), Anwar, who is also the Finance Minister, said the government’s focus was not only on “raising the ceiling” through higher productivity and corporate earnings, but also on “raising the floor” by improving wages and opportunities for workers.
He also acknowledged concerns over high CEO salaries, which he said could reach RM70,000 to RM80,000 a month.
Anwar said the government had taken steps to address disparities in bonus payments, including ensuring senior executives did not receive disproportionately higher bonuses than lower-paid workers.
“Sometimes CEOs receive bonuses equivalent to eight months’ salary, while workers below them receive two to three months. I don’t agree with that,” he said.
“If the bonus is three months, then the CEO gets three months and the worker who collects the rubbish gets three months.
“Because a CEO may earn RM40,000, while the person collecting rubbish earns RM2,000. There is already a huge difference in their salaries.”
He said the same principle of fairness was applied to the public service, where lower-paid civil servants received larger percentage increases under the new civil service remuneration scheme compared with those at the highest levels.
“There must be a sense of fairness,” he said.
“Justice is not equality. Justice does not mean giving everyone exactly the same treatment.”
Citing Korea as an example, Anwar said productivity is high, and salaries increase equally in line with productivity.
"But in Malaysia, our productivity continues to increase, but our salary remains low," he said.
Anwar said the Government had to apply some pressure as it could not rely solely on legislation to enforce such measures, as overly stringent policies could drive investors away.
"If that is so, they will close their businesses and go somewhere else, go to Vietnam or other countries.
"So we need to discuss this amicably. God willing, I will announce some initiatives on this during the Budget," said Anwar.
Budget 2027 is scheduled to be tabled in Parliament on Oct 9.
