PETALING JAYA: Malaysia needs higher real wages, more skilled jobs and better living standards, not just strong economic growth figures, says Datuk Lawrence Low.
The MCA vice-president said Budget 2027 should ensure that companies receiving government investment incentives create better-paying jobs for Malaysians.
He suggested that such companies be required to disclose annually the number of Malaysian jobs created and the salaries offered. The requirement, he said, could also extend to the services and data centre sectors.
Low, who is also MCA Economic and SMEs Affairs Committee chairman, said the proposal would help ensure that investment-led growth is reflected in workers’ incomes.
Malaysia’s economy expanded by 5.4% in the first quarter of 2026 and 6% in the second quarter, but Low questioned whether the growth had translated into meaningful wage gains for ordinary Malaysians.
Citing Bank Negara’s Economic and Monetary Review 2025, he said productivity had increased by 9% since 2019, while real wages for private-sector employees had fallen by 1.7%.
He also referred to Statistics Department figures showing that 66.1% of the 31,500 jobs created in the second quarter were semi-skilled positions, compared with 25.2% skilled jobs.
“Malaysians need more than strong economic growth figures. They need higher real wages, quality jobs and living standards that genuinely improve,” he said.
Low said Budget 2027 should also offer clearer guidance to micro, small and medium enterprises (MSMEs) on minimum wage exemptions, including which businesses qualify, how long the exemptions would remain in force and how affected employees could be supported to raise their incomes.
He noted that MSMEs employ about 8.09 million people, or 48.7% of the country’s workforce.
“Neither businesses nor workers can plan indefinitely around a temporary exemption,” he said.
Low suggested that future minimum wage revisions be announced at least 12 months in advance, together with the National Wages Consultative Council’s assessment of the likely effects on businesses and employment.
He also called for additional tax deductions for MSMEs that invest in automation, digitalisation and employee training.
On regulatory certainty, Low said repeated changes to the e-Invoice implementation timeline and exemption thresholds since June last year had added costs for businesses that had acted early to comply.
He said the government should give sufficient notice for major changes involving wages, taxation, EPF, e-Invoice and other compliance costs.
Low added that Budget 2027 should clearly announce the outcome of the review of the proposed 2% Employees Provident Fund contribution for foreign workers, which MCA has urged Putrajaya to withdraw.
He proposed that the government publish a 2027 statutory costs and compliance policy timeline to help businesses prepare for regulatory changes.
“Businesses are not afraid of reform. They are afraid of unpredictable reforms,” he said.
