Malaysia plans new wage scheme for low-income workers

'Progressive' model targets small business, but effectiveness questioned

20231206 malaysian workers

Workers at a construction site in Kuala Lumpur: Most workers in Malaysia are employed by small and medium size businesses. © Reuters

NORMAN GOH, Nikkei staff writer

KUALA LUMPUR -- Malaysia's government will introduce a new program to raise wages for low-income workers, as the Southeast Asian country grapples with rising living costs and growing inequality.

The Progressive Wage Policy, under which employers would gradually increase pay for their workers based on their skills, experience and performance, will start in June 2024 and involve 1,000 companies in a pilot project.

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