KATHMANDU – Malaysia will increase its minimum monthly wage from 1,700 ringgit to 2,000 ringgit starting June 2027, a move expected to benefit more than four million workers, including Nepalis.
Prime Minister Anwar Ibrahim announced the increase while presenting the country’s 2027 budget to parliament on Friday.
Malaysia’s minimum wage law applies to foreign workers as well as Malaysian citizens, entitling Nepali workers to the same statutory minimum basic wage.
However, micro, small and medium-sized enterprises with annual turnover below 50 million ringgit will be exempt from the new requirement to help smaller businesses adjust.
Anwar said the increase aims to address the growing gap between workers’ wages and productivity amid rising living costs. The government also plans to introduce a minimum starting monthly salary of 2,500 ringgit for semi-skilled workers and university graduates.
The new minimum wage will take effect in June 2027, meaning workers will have to wait until then to benefit from the increase.