#Belanjawan2027: Higher Wages, Gig Worker Support & 30,000 New Jobs In Store For M’sians

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On 9 October, Prime Minister Datuk Seri Anwar Ibrahim announced Budget 2027.

Among the announcements under the latest budget, a key one included higher wages, support for gig workers, and more funding for skills training.

As a follow-up, Human Resources Minister Dato' Sri Ramanan Ramakrishnan outlined the measures under the Ministry of Human Resources (KESUMA).

"KESUMA's priority is to ensure that wage increases are supported by relevant skills and better social protection," he said.

Most notably, TalentCorp will help expand employment opportunities and support Malaysian businesses growing across ASEAN, while the ministry's other initiatives address wages, work-related costs, and training.

Here's a breakdown of the initiatives:

1. TalentCorp's Bakat MADANI programme will target 30,000 new job opportunities in 2027

Bakat MADANI will expand from 25,000 training and quality employment opportunities to a target of 30,000 new job opportunities in 2027, including through private sector participation.

Companies implementing Bakat MADANI training programmes will receive tax deductions effective from 29 June 2026 to 31 December 2030, encouraging more businesses to participate.

The initiative will help develop talent that meets industry needs while giving young Malaysians greater access to quality employment.

TalentCorp will also facilitate the initial Employment Pass application process for companies listed under the Malaysian ASEAN Business Entity (MyABE) initiative, led by the Securities Commission Malaysia.

The target processing time is five working days, helping Malaysian companies expanding across ASEAN access the global talent needed for their regional operations.

2. The minimum wage will rise to RM2,000, with a separate RM2,500 rate also announced

The monthly minimum wage will increase from RM1,700 to RM2,000 from June 2027. According to the ministry, this is an additional RM300, or 17.6%, with more than four million workers covered by the new rate.

However, micro, small, and medium enterprises with annual sales below RM50 million are exempt to give them room to adjust their business models.

The government also announced a RM2,500 monthly minimum wage for semi-skilled jobs and graduates as an initial step in reforming the worker income framework.

"I welcome this move to ensure that wages better reflect workers' qualifications and skills," Ramanan said.

Separately, government-linked investment companies (GLICs) and government-linked companies (GLCs) have committed to raising their living wage benchmark from RM3,100 to RM3,400, benefiting 230,000 workers.

3. Gig workers will receive support for earnings, work-related costs, and social protection

Starting in 2027, a RM160 million package jointly funded by the government and Grab will support e-hailing and p-hailing workers.

It covers higher minimum earnings rates, vehicle maintenance assistance, insurance, and SOCSO contributions.

KESUMA expects median net monthly earnings to increase by up to:

• RM227 for e-hailing drivers
• RM100 for p-hailing delivery workers
  

The Gig Consultative Council is also negotiating minimum earnings rates, an earnings formula, and minimum social protection standards, to be finalised in early 2027.

"In my view, earnings arrangements need to take into account working time and the actual costs of carrying out tasks to ensure that gig workers receive fairer and more sustainable net incomes," Ramanan said.

Other protection and retirement measures include:

• SOCSO matching contribution incentives of 35% for e-hailing and p-hailing workers, rising to 50% if platform companies also contribute towards workers' coverage.
• A 70% contribution incentive for more than 200,000 self-employed people across 17 sectors where coverage is not mandatory.
• EPF matching contributions of up to RM600 annually, capped at RM6,000 over a lifetime, for e-hailing and p-hailing workers.
• SOCSO tax relief extended to mandatory Lindung Kendiri contributions, with additional relief of up to RM150 for voluntary Lindung 24 Jam and Lindung Kendiri contributions.
  

The government, through Tabung Haji, will also fully fund SOCSO contributions for 40,000 religious personnel, including imams, bilals, mosque attendants, and takmir teachers.

4. More funding to support skills training, including elderly care and automotive careers

Budget 2027 allocates RM8 billion for technical and vocational education and training (TVET) across ministries.

The training and skills development initiatives include:

• HRD Corp: Its RM3 billion levy fund will support three million training opportunities, focusing on certification, continuing professional development, and industry-relevant skills.
• Skills Development Fund Corporation (PTPK): RM500 million will finance trainees at public and private skills institutions registered with it.
• Elderly care: More than RM40 million through HRD Corp will train 8,000 Malaysians.
• Automotive technology: The Advanced Automotive Technology programme through ADTEC JTM will provide graduates with a route into skilled automotive careers.
• Indian youth employment: MITRA's allocation will increase by RM50 million to RM150 million, prioritising training and jobs in industrial automation, technology, and aircraft maintenance.
  

Ramanan called on employers, training providers, and platform companies to help implement the initiatives.

"I invite employers, training providers, and platform companies to work together to advance this agenda so that workers can build more secure lives," he said.

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