Rafizi Warns of “Salary Trap,” Urges Radical Wage Growth for Malaysians

KUALA LUMPUR, June 1 – Economy strategist Rafizi Ramli has cautioned that Malaysia risks falling into a “salary trap” unless wage growth is urgently addressed. He stressed that while government policies often focus on B40 households, professionals, entrepreneurs, SMEs and taxpayers also feel increasingly burdened despite being key contributors to the economy.

Rafizi argued that clean wage growth of at least 5% above inflation is necessary to create a trickle‑down effect benefiting all income groups. He called for higher‑value economic activities to drive opportunities for SMEs and the private sector, alongside progressive wages.

Wage Growth

Beyond cash aid, Rafizi emphasised improving public services such as healthcare, education and transport to reduce out‑of‑pocket expenses, thereby boosting net disposable income.

He also urged reforms in procurement and accountability to ensure public funds are used effectively. “Berakhirnya satu babak bukan bermakna berakhirnya khidmat,” he said, pledging continued focus on equitable growth.

#businessnews

Vietnam’s Rising Influence in ASEAN Takes Centre Stage at the Shangri-La Dialogue