The Malaysian government has set a target to raise the average monthly wage to RM3,000 by 2030 as part of a wide-ranging reform of the country’s labour market aimed at strengthening workers’ welfare and improving income distribution.
Human Resources Minister Datuk Seri R. Ramanan said the goal will be pursued through the 13th Malaysia Plan, which focuses on building a more dynamic, sustainable and competitive employment ecosystem.
He said the government is working towards a “new labour contract” between employers and employees to ensure that economic gains are more fairly shared.
“In this contract, we reject the old model where profits accumulate on one side while risks are shifted to the weakest party,” he said during the 2026 Labour Day celebration, officiated by Prime Minister Datuk Seri Anwar Ibrahim.
Ramanan also said Malaysia aims to increase the labour income share to 40 per cent of Gross Domestic Product (GDP) as part of efforts to strengthen workers’ financial security and overall well-being.
He added that beyond wage improvements, the country is also positioning itself to move from being a technology consumer to a technology leader, particularly in artificial intelligence (AI) and semiconductor development.
“We want the ‘Made by Malaysia’ label to be seen on integrated circuits and AI software globally, not just as users but as creators of technology,” he said.
As part of this ambition, the Ministry of Human Resources will establish the Kesuma Semiconductor Academy to train local talent in chip design and AI-related manufacturing skills.
Ramanan also said the government will continue monitoring global geopolitical developments and their impact on the labour market, and is prepared to intervene when necessary to safeguard workers’ welfare and industry stability.
