7 in 10 formal workers earn less than RM5,000 (S$1,579) a month in Malaysia

MALAYSIA: A recent World Bank report has confirmed what many Malaysian professionals already feel: Wages are not keeping pace with economic growth. While the economy continues to expand, the benefits are not reaching the middle class. 

The findings show productivity has weakened, with wage stagnation most pronounced among middle‑income earners. Minimum wages have risen and top earners continue to benefit, but the majority remain stuck. 

In 2010, Malaysian workers were twice as productive as their Chinese counterparts; by 2024, China had caught up, while Singapore widened its lead. Employers remain reluctant to offer higher salaries without higher‑value output.

One X (Twitter) user highlighted that most Malaysian workers earn below RM5,000 (S$1,579) per month, underscoring the severity of wage stagnation. He questioned whether politicians could take pride in such figures, pointing out that their own voters are struggling amid inflation and economic uncertainty.

Meanwhile, a political party claimed that 80% of Malaysians live pay‑check to pay‑check, highlighting the severity of financial insecurity among workers. At the same time, the current government is seen celebrating foreign investors building data centres across the country, a move critics argue does little to ease everyday struggles.

Others stated that in places like Johor, RM5,000 (S$1,579) isn’t really enough to feed a family. But, a majority of Malaysians are actually earning around RM3,000 (S$948), which is actually worse. 

In Malaysia, low salaries are often justified by claims that the cost of living is lower than in countries like Singapore. Yet many argue this reasoning no longer holds, as living expenses continue to rise while wages remain stagnant. 

Calls for higher pay are frequently met with warnings that it will trigger higher costs, but the reality is that inflation is already eroding household budgets. Sadly, this disconnect between wages and living costs is a familiar struggle seen worldwide.