PM: Budget 2027 initiatives will address disparities
SHAH ALAM: Datuk Seri Anwar Ibrahim says the government is dissatisfied that wages remain low despite rising productivity and strong corporate profits, an issue set to be addressed in Budget 2027.
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 at the Himpunan Mesra Alumni Universiti Teknologi Mara (UiTM) at the UiTM main campus here yesterday.
Anwar, who is also 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 said the government had taken steps to raise wages, including increasing public sector salaries, raising the private-sector minimum wage to RM1,700 and setting a RM3,100 minimum wage for government-linked investment companies (GLICs).
“But for graduates’ salaries, where are they going?
“They cannot find proper jobs, and everyone ends up doing e-hailing work, facing an uncertain future. That is a responsibility we must think about together,” said Anwar.
He also acknowledged concerns over high chief executive 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.
Citing South Korea as an example, Anwar said productivity was high there and salaries increased in line with productivity.
“But in Malaysia, our productivity continues to increase, but our salary remains low,” he said.
He said the government had to apply some pressure, as it could not rely solely on legislation, as overly stringent policies could drive investors away.
“So we need to discuss the issue amicably. I will announce some initiatives on this during the Budget,” he added.
Budget 2027 is scheduled to be tabled in Parliament on Oct 9.
Separately, Anwar ordered a review of the governance and management of UiTM Holdings amid concerns over the company’s losses.
He said the review should be undertaken with the UiTM vice-chancellor, with the Prime Minister’s Department providing support where necessary.
“Please look into UiTM Holdings and find ways to work together with the vice-chancellor.
“The Prime Minister’s Department and my office will provide cooperation and push for this initiative,” he said.
Anwar was responding to a question urging the government and UiTM Malaysia Alumni Federation to review the management of UiTM Holdings, which a student claimed had recorded losses of more than RM100mil.
