Any new minimum wage figure, including the previously speculated rates of RM2,000, RM2,100 or RM2,200, cannot be announced until it receives approval from the Cabinet and Prime Minister Datuk Seri Anwar Ibrahim.
Human Resources Minister Datuk Seri Ramanan Ramakrishnan said the consideration paper and Cabinet memorandum on the new minimum wage rate would be brought to the next Cabinet meeting for approval.
He stressed that no decision had been made on the new rate, adding that figures circulating previously did not represent the Government’s decision.
“I don’t know where the outside parties got the figures saying the minimum wage would increase to RM2,000, RM2,100 or RM2,200. We cannot announce anything without the permission or approval of the Cabinet, and first and foremost, the views and approval of the Prime Minister,” he said during a press conference on Tuesday.
Ramanan said he personally wanted to see the minimum wage increased as much as possible, but stressed that the decision must take into account the relevant formula and studies on its potential impact on the economy.
He said the process of determining the new minimum wage involved a large group of experts, including professors, PhD holders and Emeritus Professors, as well as a special study.
“There are studies that have been conducted. Even if it increases by RM10, there will be an impact. We need to understand what that impact is.
“We can increase the minimum wage by this amount without having an impact on the economy,” he said.
Ramanan also said the Government needed to ensure that a wage increase would not trigger higher inflation, which could ultimately reduce the benefits of increased income for workers.
“We also want to control inflation. If wages increase significantly but inflation also rises significantly, then what is the difference?” he said.
Earlier, it was reported that the current RM1,700 minimum wage was expected to be increased, with the details potentially to be announced by Anwar during the tabling of Budget 2027 in the Dewan Rakyat on Oct 9.
Anwar had said the review and study on the minimum wage adjustment was in its final stage before being announced during the Budget 2027 presentation.
Ramanan made the remarks after receiving the Darjah Kebesaran Jiwa Mahkota Kelantan Yang Amat Mulia (SJMK), which carries the title Datuk, in conjunction with the 57th birthday celebration of Sultan Kelantan Sultan Muhammad V at Istana Balai Besar.
