KUALA LUMPUR,MAY, 2026 – The Malaysian government has announced an ambitious target to raise the country’s median monthly wage to RM3,500 by 2030 as part of the Thirteenth Malaysia Plan (13MP). The move is aimed at improving the quality of life for ordinary workers while addressing rising living costs and income inequality across the nation.
The policy reflects a broader effort by the government to strengthen the labour market and ensure that economic growth benefits a larger portion of the population, rather than only high-income earners.
According to reports, the current median monthly wage in Malaysia stood at approximately RM3,000 in 2025. This figure represents the midpoint of all salaries earned by workers nationwide, meaning half of workers earn below the amount while the other half earn above it.
Understanding the Difference Between Median and Minimum Wage
The government’s focus on the median wage highlights a significant shift in how income growth is being measured.
A minimum wage refers to the legally mandated lowest salary employers can pay workers. In contrast, the median wage provides a more realistic reflection of what the average Malaysian worker actually earns.
Economic experts often consider the median wage a more accurate indicator of income distribution because it is less affected by extremely high salaries earned by top executives or corporate leaders. While average wage calculations can be distorted by wealthy earners, the median wage better represents ordinary workers across different sectors.
The government believes that improving the median wage will create broader economic benefits by increasing purchasing power and enhancing financial stability for middle- and lower-income households.
Wage Growth Trends in Malaysia
Official statistics from the Department of Statistics Malaysia (DOSM) show that wages in the formal sector have been gradually increasing over the past several years.
Median monthly wages recorded in the formal sector were:
- RM2,764 in December 2022
- RM2,900 in December 2023
- RM3,045 in December 2024
- RM3,167 in December 2025
These figures indicate a steady upward trend, although many Malaysians still struggle with rising living expenses, housing costs, transportation fees, and food prices.
The government hopes the new wage target will accelerate income growth while improving overall economic resilience.
Government’s Strategy to Achieve the RM3,500 Target
Human Resources Minister R. Ramanan recently stated that the wage increase initiative is already being implemented through multiple labour market reforms.
Among the key strategies outlined under the 13MP are:
- Periodic revisions of the national minimum wage based on living costs
- Stronger wage structures and career progression systems
- Higher starting salaries for graduates and Technical and Vocational Education and Training (TVET) graduates
- Encouraging companies to reward productivity and skill improvements
- Expanding high-skilled job opportunities across industries
Malaysia also increased its minimum monthly wage from RM1,500 to RM1,700 beginning February 1, 2025, as part of the broader wage reform initiative.
The government additionally plans to reduce dependence on low-wage foreign labour while encouraging automation and higher-value industries that can generate better-paying jobs for local workers.
Public Reactions and Concerns
Public discussion surrounding the wage target has generated mixed reactions online.
Some Malaysians welcomed the initiative, describing it as a necessary step toward improving workers’ welfare and narrowing income gaps. Others, however, expressed concerns that rising wages could eventually lead to higher living costs and inflation if not properly managed.
Online discussions also highlighted concerns over whether salary growth would keep pace with increasing prices of goods, housing, and services in the coming years.
Despite differing opinions, many observers agree that long-term wage reform is necessary for Malaysia to remain competitive and improve living standards for its workforce.
A Long-Term Economic Transformation
The RM3,500 median wage target represents more than just a salary increase initiative. It forms part of Malaysia’s broader strategy to transition into a higher-income and skills-based economy.
The government aims to strengthen productivity, expand participation in advanced industries such as semiconductor manufacturing and artificial intelligence, and create a more sustainable labour ecosystem for future generations.
Officials believe that if successfully implemented, the policy could help millions of Malaysians achieve greater financial security while supporting the country’s long-term economic growth and competitiveness.
