KUALA LUMPUR, Nov 12 — Malaysia’s latest minimum wage increase is expected to benefit workers through better incomes, while encouraging businesses to step up efforts to improve productivity to ensure that higher wages can be sustained without putting further pressure on prices.
CGS International Securities Malaysia chief economist Nazmi Idrus said wage growth had helped workers recover some of the purchasing power lost during the high-inflation period following the Covid-19 pandemic.
He said wages had gradually caught up with inflation, although any fresh increase in prices could erode some of the gains made by households.
“During periods of high inflation post-pandemic, we saw the erosion of spending power.
