Malaysia raises minimum wage to 1,700 ringgit. Impact on foreign companies and countermeasures.
The Malaysian government decided in February 2025 to raise the national minimum wage to 1,700 ringgit per month (approximately 51,000 yen). This represents an increase of about 13% from the previous minimum wage of 1,500 ringgit in 2022. While this will increase labor costs for foreign companies operating in Malaysia, it will still be significantly lower than in Japan.
The background to this minimum wage increase is the Malaysian government’s goal of becoming a high-income country by 2030. This is part of a policy to promote increased purchasing power and domestic demand, and the Malaysian consumer market is expected to expand further.
While rising labor costs will be a challenge for companies operating in Malaysia, the advantages of Malaysia—such as securing highly skilled multilingual talent, an English-speaking business environment, and the possibility of 100% foreign investment—remain significant. Our organization supports the design of Malaysian market entry plans based on the latest labor laws and cost information.
Source: Malaysian Government and JETRO various materials (February 2025)