Govt's next step is to bring wages above cost of living - Rafizi

Summary

• Economy Minister Rafizi Ramli says the government’s next step is to bring wages above the cost of living.

• He says if inflation can be maintained below two percent for the next few years, steps to hike wages and create high-income jobs will allay the cost of living.

• He adds that the government’s interventions to raise wages will happen simultaneously this year.

PARLIAMENT | Economy Minister Rafizi Ramli said the next step in the government’s plan for the national economy is to bring wages above the cost of living.

If inflation can be maintained below two percent for the next few years, the government’s interventions to increase wages and create high-income jobs will start to relieve cost of living pressures, he told the Dewan Rakyat today.

“This 2025 is an important year because all three of the government’s interventions to raise wages will happen simultaneously.

“The increase in civil servant salaries, the increase in minimum salary, and also the implementation of progressive salaries using the first RM200 million,” he said in his winding-up speech on the royal address.

In December, civil servants under the support, management, and professional groups, got an average 15-percent salary increase.

During the tabling of the Budget 2025, Prime Minister Anwar Ibrahim announced that the minimum wage will be increased from RM1,500 to RM1,700 beginning this month.

Last May, the government introduced the progressive wage policy, a voluntary scheme intended to raise national wages.

Today, Rafizi expressed his certainty that these measures will result in higher median wages reflected in the data for this year.

“So we need to wait for the data on wages for 2025 but I am confident once this happens, we will witness a median wage that is very much higher,” he said.

He explained that the government’s first two years in office were focused on establishing a strong economic narrative.

Once that was accomplished, he said medium- and long-term growth followed as investors welcomed the country’s narrative and economic prospects.

“And when there is momentum now, then more focus needs to be given to structural changes and economic reforms so that the growth, its spillover can be felt by the people whether through job opportunities, wages, and others,” he added.

Govt to adopt globalist approach in 13th Malaysia Plan, says Rafizi

Rafizi envisions 'Made by M'sia' chips, GPUs within 5-10 years

13th M'sia plan reforms to ensure minimal 'sick' projects - Rafizi

T15 definition soon, move from gauging income to expenses - Rafizi