Kuala Lumpur, October 5, 2024 – The Europe Today: Malaysian Prime Minister Datuk Seri Anwar Ibrahim announced that the Madani government will address inflation concerns in the upcoming Budget 2025, which will be presented on October 18. While Malaysia’s prices for essential goods such as edible oil, petrol, and flour remain relatively lower than in neighboring countries, Anwar emphasized the need to improve income levels to alleviate inflationary pressures.
Anwar highlighted that despite productivity and investment growth, wages have not kept pace. Citing the recent civil service salary increase, he noted, “We must address this issue; we raised civil servants’ salaries, which had been largely neglected for 12 years.” He added that this move sets an example for private sector conglomerates to also consider wage increases, especially those with substantial profits.
In a recent interview with CNBC, Anwar stressed that while price concerns exist, the real issue lies in low wages. He urged the private sector to reflect on their profits and raise wages accordingly.
According to the Department of Statistics Malaysia (DoSM), the inflation rate in August 2024 moderated to 1.9% year-on-year, slightly below expectations. The main contributors to inflation were increases in restaurant and accommodation services (3.2%), personal care and social protection (3.2%), housing and utilities (3.1%), and recreation and culture (2.0%).
In line with efforts to address inflation and wage stagnation, Anwar previously announced a 15% salary increase for civil servants in the implementing, management, and professional groups, and a 7% increase for top management. The salary adjustments will be implemented in phases, with the first phase beginning on December 1, 2024, and the second phase on January 1, 2026. This marks the first salary adjustment in 12 years, a necessary measure to respond to current economic challenges.
