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Govt confident of hitting 40pc workers’ compensation target by 2030, says deputy economy minister

KUALA LUMPUR, Oct 8 — The government is confident of achieving its target of raising workers’ compensation to 40 per cent of gross domestic product (GDP) by 2030, in line with...

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政府有信心在2030年实现40%的工伤赔偿目标,经济部副部长表示。

The Malaysian government aims to raise workers' compensation to 40% of GDP by 2030, aligning with the 13th Malaysia Plan.

Structural economic transformation and strategic plans like NIMP 2030 and NSS aim to create skilled jobs and attract investment.

Workers' compensation was 33.9% of GDP in 2025, and the government plans to expand the Progressive Wage Policy for better wage alignment with productivity.

KUALA LUMPUR, Oct 8 — The government is confident of achieving its target of raising workers’ compensation to 40 per cent of gross domestic product (GDP) by 2030, in line with the aspirations of the 13th Malaysia Plan (13MP), Deputy Economy Minister Datuk Mohd Shahar Abdullah said.

He said the government, through the Economy Ministry, would accelerate structural economic transformation towards a high-value economy driven by innovation, digitalisation, advanced technologies and knowledge-intensive activities to raise workers’ compensation.

“This structural transformation will create more skilled jobs offering higher wages.

“Implementation of national strategic initiatives such as the New Industrial Master Plan (NIMP) 2030, National Semiconductor Strategy (NSS) and National Energy Transition Roadmap (NETR) will attract more high-quality investment opportunities,” he said during a question-and-answer session in the Dewan Rakyat today.

He was responding to a question from Mohd Syahir Che Sulaiman (PN-Bachok), who asked about the government’s strategy to raise workers’ compensation to 40 per cent of GDP by 2030, including measures to ensure wage growth keeps pace with productivity.

Mohd Shahar said workers’ compensation accounted for 33.9 per cent of GDP in 2025, up from 33.6 per cent in 2024, an increase of 0.3 percentage point.

He said the government would also consider expanding the Progressive Wage Policy to strategic sectors to ensure efforts to raise workers’ wages remain aligned with productivity growth.

“At the same time, the government is committed to raising the benchmark wage to RM3,500, and we are currently on track to achieve that target,” he added. — Bernama

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