Arya News - Economy Minister Akmal Nasrullah Mohd Nasir said the government needs to ensure economic growth translates into better incomes for Malaysians, alongside efforts to strengthen local companies and move them into high-growth, high-value (HGHV) industries.
GEORGE TOWN – Higher wages for Malaysians should be made a priority in Budget 2027 as the economy continues to grow despite geopolitical uncertainties, says Economy Minister Akmal Nasrullah Mohd Nasir.
He said the government needed to ensure economic growth translated into better incomes for Malaysians, alongside efforts to strengthen local companies and move them into high-growth, high-value (HGHV) industries.
“For Budget 2027, we are also looking at the fairly good growth shown in several industries, as well as aggregate growth,” he told reporters on Thursday (Sept 24).
“We see that this year has shown quite encouraging growth, although the geopolitical situation remains uncertain.”
Akmal said this made it timely for discussions on the income and wages of ordinary Malaysians to be given greater priority.
“It is our hope that in this Budget, we will be able to state our commitment on how we can review or improve the position of wages for Malaysians,” he said.
Speaking during KL20 at the Penang Waterfront Convention Centre, Akmal said higher wages also had to be supported by stronger companies capable of creating better-paying jobs.
He said the government’s support for industries such as the Automation Testing and Equipment sector was part of this approach.
“The issue of income must also come together with the capabilities of companies,” he said.
“The intention is to continue raising the capabilities of our companies, which will then create better employment opportunities and more meaningful wages for our citizens.”
Akmal said the Economy Ministry was also looking at ways to improve the structure of the economy by encouraging Malaysian companies to move beyond manufacturing into higher-value positions in supply chains and industrial ecosystems.
He said the focus on high-growth, high-value industries was aimed at ensuring Malaysian companies could capture more value from economic activity.
“It’s not just about being at the manufacturing level, but looking at the ability to continue moving to a better position in terms of value within the supply chain or the existing ecosystem,” he said.
On protection for consumers amid high oil prices, Akmal said the government would continue looking at ways to cushion the impact of fuel price increases while balancing this against fiscal constraints.
He said the government’s commitment remained to stabilise and reduce the impact of higher oil prices on the public through targeted measures, including Budi95.
He also referred to recent measures involving diesel, saying targeted assistance provided a buffer for the public while allowing economic activities to continue.
“Although it is targeted, there is an amount that we have set or capped, but this is sufficient to allow daily affairs and economic activities to continue well,” he said.
Akmal said the challenge for Budget 2027 would be to balance protection for the public, particularly through fuel subsidies, with the government’s fiscal position and its need to continue driving development and economic growth.
“With oil prices still high and the outlook remaining uncertain, the country must still be able to plan for development and our economic progress,” he said.
Budget 2027 is scheduled to be tabled next month.