KUALA LUMPUR (May 1): Government-linked investment companies (GLICs) have implemented a living wage policy for all their permanent Malaysian employees.
The benchmark living wage, based on comparative analysis of industry wages and cost of living standards outlined in Budget 2024/2025 Expenditure Guide, was set at some RM3,100 per month, close to double the RM1,700 monthly minimum wage that has been implemented since Feb 1, 2025.
GLICs that have fulfilled and committed to the living wage cause include Khazanah Nasional Bhd, Permodalan Nasional Bhd (PNB), the Employees Provident Fund (EPF), Kumpulan Wang Persaraan (Diperbadankan) (KWAP), Lembaga Tabung Angkatan Tentera (LTAT), and Lembaga Tabung Haji.
“Delivering on the vision of the Madani Economy requires a whole-of-nation approach, with the corporate sector playing a vital role. The collective move by the GLICs to implement a living wage is an important step to ‘raise the floor’, ensuring that growth is both inclusive and firmly rooted in the well-being of Malaysians,” said Finance Minister II Datuk Seri Amir Hamzah Azizan in a joint press statement by the GLICs.
The commitment to implementing a living wage is part of the GEAR-uP initiative led by the Ministry of Finance under the Madani Economy framework that seeks synergised efforts across GLICs to catalyse growth in key economic sectors in Malaysia, with the objectives of “raising the ceiling” and “raising the floor” of wages.
In the joint statement, PNB president and group chief executive Datuk Abdul Rahman Ahmad said that the organisation had introduced its living wage framework in 2023 within the organisation as a commitment to social responsibility and employee well-being.
“We are pleased to have delivered our commitment to the living wage initiative. Our focus now is on our key strategic GLCs, for them to firstly adopt the minimum wage policy, and then implement the policy based on the timelines agreed,” he said.
Abdul Rahman added that PNB had been constantly engaging with its GLCs on the living wage framework since 2023, proactively urging them to commit to the policy and accelerate the implementation. To this end, three of PNB's strategic companies have established the living wage policy.
PNB is targeting all its strategic companies to adopt and commit to the living wage policy by 2026.
Similarly, Khazanah said that it had also fulfilled its commitment to providing a living wage for its employees. It is also actively engaging the core holdings within its portfolio to embed living wage practices across their operations.
“Khazanah is committed to leading by example and has fully implemented a living wage within our own operations, while 10 of our core holdings have committed to implementing the living wage. We will continue to promote greater awareness and adoption with the rest of our portfolio companies. Supporting the living wage is key in boosting productivity, building stronger and resilient businesses that contribute to a stable, equitable and a sustainable development path for Malaysia,” said Khazanah managing director Datuk Amirul Feisal Wan Zahir.
EPF chief executive officer Ahmad Zulqarnain Onn said that the responsibility starts with the custodian of Malaysians' retirement savings, and added that it will also collaborate with its investee companies and ecosystem partners to encourage adoption of a similar living wage framework, supporting a more inclusive and equitable economic future for all Malaysians.
“Ultimately, improved wages uplift quality of life and translate into stronger retirement savings, ensuring future needs are met with dignity,” he added.
KWAP CEO Datuk Nik Amlizan Mohamed said that as Malaysia’s largest public-sector pension fund, it is focused not only on delivering sustainable financial returns, but also on supporting the people who enable its long-term value creation.
Meanwhile, LTAT said that it is addressing its commitment to the RM3,100 living wage through a review this year that will extend beyond salary structure revisions to include non-salary elements that holistically support staff welfare.
“As a GLIC, we are fully cognisant of our role in shaping a more equitable future, and we will ensure this commitment resonates across our ecosystem by encouraging our investee companies and associates to echo this move,” said LTAT chief executive Mohammad Ashraf Md Radzi.
Similarly, Tabung Haji, which has implemented the living wage initiative, said that it will also collaborate with its group of companies for greater impact.
It added that as an Islamic financial institution, investing in its people is in line with the higher objectives of Maqasid Shariah, which underpins Tabung Haji’s Stewardship Framework.
Source: https://theedgemalaysia.com/node/753678