2025-08-05,KUALA LUMPUR

An economist said Malaysians living in cities need to earn a minimum monthly income of RM3,000 to cover basic living expenses.

The figure is a more realistic benchmark than the government's RM1,700 minimum wage, which forces many urban families to juggle multiple jobs.

Malaysia University of Science and Technology (MUST) lecturer Professor Emeritus Dr Barjoyai Bardai said the setting of a minimum wage should take into account geographic factors and job types, as urban needs are significantly different from those in rural areas.

"A RM1,700 salary may suit unskilled labour like foreign workers in factories or as security guards. But local workers, especially in cities, need more," Barjoyai said.

"Locals have to pay rent, utility bills and support dependants, whereas foreign workers are often able to share cramped living quarters with up to 20 people, eat minimally, and send most of their earnings back to their home countries."

Barjoyai said that many local workers, particularly in the tourism, plantation, and agricultural sectors, are still earning below the RM1,700 threshold despite its implementation on Aug 1, leaving them under immense pressure as their wages fail to meet daily commitments.

However, he said that a sudden wage increase could have negative effects on micro, small, and medium enterprises (MSMEs).

"Many businesses might shut down if they can't afford to pay more.

A long-term solution would be to provide reskilling and upskilling opportunities so Malaysians can transition to higher-paying jobs," he said.

Meanwhile, Universiti Putra Malaysia (UPM) Faculty of Human Ecology Dean Dr Mohamad Fazli Sabri said urban residents should ideally earn between RM2,300 and RM5,000 a month to meet daily needs and the modern cost of living, based on the Basic Expenses for Decent Living (PAKW) benchmark.

Mohamad Fazli said the average minimum expenditure for a single person in the capital could reach RM2,200 monthly, covering rent, transport, and food, but excluding savings, insurance or emergency funds.

"Although the minimum wage serves as a baseline for income, it needs to be reviewed," he said.

"The 50:30:20 budgeting rule — allocating 50 per cent for necessities, 30 per cent for wants, and 20 per cent for savings or debt repayment — is ideal for maintaining financial balance.

"However, this only works when income matches the cost of living.

"In reality, many cannot rely on the minimum wage alone and must seek additional income through part-time work, business or investments," he said.

Mohamad Fazli, who is also the Malaysian Financial Planning Council (MFPC) vice-president, said the government must reassess the current wage level to better reflect reality and help citizens break free from financial stress.