Inflation erodes real income gains despite wage hikes - News Summed Up

Inflation erodes real income gains despite wage hikes


PETALING JAYA: Despite steady increases in nominal wages over the past decade, Malaysians are finding their purchasing power squeezed as inflation continues to erode real income gains. According to the Statistics Department (DOSM), the median monthly wage in Malaysia rose from around RM2,000 in 2015 to RM2,864 last year. In contrast, inflation has fluctuated sharply, with spikes in 2017 and 2022 that outpaced wage growth and left households struggling to keep up. In 2017, inflation climbed to 3.7%, driven largely by rising fuel prices and global commodity costs. “The government’s RM200 top-up under the Progressive Wage Policy has already helped employers absorb part of the cost.


Source: The Star February 14, 2026 12:10 UTC



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