TMR

by AKMAR ANNUAR

WHILE the government’s move to raise the national minimum wage to RM1,700 has offered some relief to low-income earners, many young workers in Malaysia’s urban centres say the increase falls short of addressing the escalating cost of living.

For many, especially those in the Klang Valley, financial pressure has pushed them to adopt stricter budgeting practices, take on multiple jobs and postpone major life events such as marriage, all in a bid to stay afloat.

The new minimum wage, which took effect on Aug 1, was announced during the tabling of Budget 2025 last October as part of broader economic reforms. It applies to all employers regardless of their size.

Under the National Wages Consultative Council Act 2011 (Act 732), failure to comply can result in a fine of up to RM10,000 per employee, with a daily penalty of RM1,000 for continuing offences, and up to RM20,000 or five years’ imprisonment for repeat violations.

Despite the increase from RM1,500 to RM1,700, many urban workers argue that the figure does not reflect the reality of metropolitan expenses.

In a report by Utusan Malaysia, a significant portion of young employees surveyed revealed they are barely scraping by, resorting to cost-cutting measures that affect their daily lives.

Mohammad Noriman Ahmad Zarkhoni, a 22-year-old juggling two jobs as a food delivery rider and factory operator, earns roughly RM1,500 from deliveries alone.

However, his monthly expenses far exceed that. Time management is crucial to avoid burnout.

“So far I can manage, but I really hope there will be further improvements to the minimum wage, especially because the cost of living in the city is very different from rural areas,” he said.

Others, like 25-year-old Muhd Rafiq Ridzuan Zainatul Rahman, have had to shelve personal milestones.

He had planned to get married but said that his current income as a delivery rider leaves little room for savings, prompting him to delay the ceremony indefinitely.

He explained that the decision to postpone marriage was not out of choice but necessity, citing prolonged financial strain and the need to accumulate adequate funds to cover wedding costs.

Similarly, 24-year-old Nurain Syamila Mohd Zamri said she has cut back drastically on all non-essential spending.

She no longer shops for new clothes or electronics and has made lifestyle adjustments such as preparing home-cooked meals and avoiding sugary drinks.

She believes the minimum wage should be raised further, ideally to between RM2,000 and RM2,500, to better reflect urban living standards.

A number of employees have also turned to overtime as a supplementary income source. Nor Amin Amat Salleh, 23, who works in administration, relies on overtime work to earn an additional RM500 to RM700 monthly.

He admitted it was exhausting but necessary, due to family responsibilities and other financial commitments.

In retail, 23-year-old Amirul Haziq Ahmad Husainy earns around RM1,700 a month as a sales assistant at a shopping centre — just enough to cover the basics. To stretch his income, he now avoids dining out and brings meals from home instead.

Thaqif Adib Marozi, who works a packed schedule, cooks his meals in bulk over the weekends to save both time and money. On weekdays, he eats only once a day and opts for the cheapest food options available.

He expressed frustration over the rising cost of raw ingredients in wet markets, which makes home cooking increasingly burdensome despite being more economical than eating out.

He noted that both cooked meals and groceries have become more expensive, creating a squeeze on all fronts.

For some, eggs have become a staple due to affordability. Nurkhairulaiman Najmi Md Kareen, a 23-year-old sales executive, said he often relies on them as his primary protein source.

He urged the government to ensure prices of basic food items remain controlled to prevent further strain on low-income households.

As living costs continue to rise, young Malaysians in urban areas are calling for wage policies that reflect the reality on the ground.

While the RM1,700 minimum wage may mark progress, for many, it is merely a starting point in a much larger struggle for economic survival.

The post Minimum wage hike offers limited relief for urban youths facing rising costs appeared first on The Malaysian Reserve.