Malaysia Reviews Wage Structure Reforms for Sustainable Growth

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PUTRAJAYA, 4 November 2026 (The Capital Post) – The Ministry of Human Resources (KESUMA) is reviewing reforms to Malaysia’s wage structure and governance framework to promote fairer pay, sustainable wage growth and greater economic inclusivity.

The discussions took place during the National Wage Structure and Governance Reform Roundtable, organised by the National Wage and Gig Consultative Council (MPGGN) at Dorsett Putrajaya on 3 November.

The programme brought together government representatives, economists, academics, trade union leaders and other stakeholders to examine approaches to strengthening the country’s wage policies.

Key discussions focused on improving wage growth, addressing wage compression through collective negotiations and reviewing international best practices relating to the concept of a living wage.

Two main areas were highlighted during the roundtable: Wage Institutional Reform and Wage Structure Reform in the Macroeconomy.

These discussions examined how Malaysia’s wage framework could better balance employee remuneration with productivity, business competitiveness and broader economic growth.

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The programme featured presentations by Datuk Mohamed Shafie BP Mammal, President of the Union Network International Malaysian Labour Centre (UNI-MLC), and Tun Nur Aderina Tun Yazli Hismul Asri, Senior Economist at Bank Negara Malaysia.

A dialogue session with Nurhisham Hussein, Economic Adviser to the Prime Minister’s Office, also explored challenges and strategic approaches to improving the national wage system.

The closing ceremony was officiated by KESUMA Deputy Secretary-General (Policy and International), Dr. Hj. Mohd Shaharin Umar.

According to a post on the official Facebook page of Kementerian Sumber Manusia, the roundtable formed part of the ministry’s efforts to strengthen wage policies and governance through inclusive consultation, expert input and consideration of the interests of workers, employers and the national economy – The Capital Post