02/02/2026

MONDAY | FEB 2, 2026

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Minimum wage not enough to cover expenses in cities

Strict eye on Ramadan stall rental process KUALA LUMPUR: The Kuala Lumpur City Hall will tighten enforcement to ensure that no middlemen or agents are involved in exploiting the management of rental rates of the Ramadan 2026 bazaar sites in the capital. Minister in the Prime Minister’s Department (Federal Territories) Hannah Yeoh said this is in line with the government’s move to reduce the rate this year from RM500 to RM400, which is to ease the cost of living, particularly in the capital. “The government has taken steps to reduce the rate and the next step will be enforcement to ensure there are no middlemen or agents. “We want to make sure that the cost of living comes down and to ease the burden on KL residents,” she told reporters after officiating the Kuala Lumpur Madani Carnival on Saturday. Also present were the prime minister’s wife, Datuk Seri Dr Wan Azizah Wan Ismail, who is Bandar Tun Razak MP and Minister in the Prime Minister’s Department (Religious Affairs) Datuk Dr Zulkifli Hasan. The city hall will organise Ramadan bazaars at nine locations while hawkers’ associations will manage 32 other locations. In another development, Yeoh said improvements to disability-friendly infrastructure in the Federal Territories require cooperation from multiple ministries and agencies. She said her ministry will work closely with the Women, Family and Community Development Ministry to conduct engagement sessions with the disabled community in several areas around the capital. – Bernama RM179m of ‘leaked’ subsidised goods seized PASIR MAS: The value of goods seized from Ops Tiris between 2024 and January 2026 reached nearly RM179 million, highlighting the scale of leakages involving subsidised controlled goods that the Domestic Trade and Cost of Living Ministry has successfully curbed nationwide. Ministry’s enforcement director-general Datuk Azman Adam said the figure comprised RM91.59 million in seizures recorded in 2024, RM81.69 million in 2025 and RM5.73 million in January 2026 alone – all achieved through integrated enforcement operations with related agencies. He said Ops Tiris 3.0 involved 93,887 inspections nationwide, resulting in 5,269 cases and 660 arrests. “The statistics reflect the effectiveness of our enforcement strategy, with the number of cases declining by 14.2% in 2025 compared with 2024, while the value of seizures fell by 10.8%,” he said after a working visit to the Rantau Panjang Immigration, Customs, Quarantine and Security Complex here yesterday. For January 2026 alone, Azman said 3,237 inspections were carried out, recording 183 cases, 39 arrests and seizures worth RM5.73 million. – Bernama

PETALING JAYA: Despite the recent increases in minimum wage, many workers in high-cost urban states continue to struggle, particularly in Kuala Lumpur, Selangor, Penang and Putrajaya, according to an economist. Universiti Teknologi Mara Department of Economics and Financial Studies senior lecturer Dr Mohamad Idham Md Razak said the gap between current wage levels and the actual cost of living in major cities remains significant, especially for lower and middle income households. “While minimum wage provides a basic income floor, it often falls short of covering essential urban expenses such as housing, transport, childcare, food, healthcare and the ability to save modestly,” he told theSun. Mohamad Idham noted that although the extent of the gap varies across households, many urban workers are only able to meet basic needs, with little room for savings or upward mobility. This reality, he said, underscores the importance of complementing wage policies with broader cost-of-living and productivity enhancing measures. He pointed out that a key limitation of the minimum wage system is its uniform national structure, which does not account for differences in living costs across regions, household sizes or urban-rural divides. “From an economic perspective, minimum wages are simpler to administer and enforce, but they are blunt instruments. A living wage model, by contrast, is anchored to the actual cost of achieving a basic but decent standard of living. It is more precise, but also more complex to implement.” As a result, relying solely on minimum wages may leave substantial segments of the workforce still struggling to cope with high living costs in urban centres, he said. The national minimum wage increased to RM1,700 per month from RM1,500 in 2025 o Economist says many workers unable to save or achieve decent standard of living, calls for location based models and productivity measures Ű BY KIRTINEE RAMESH newsdesk@thesundaily.com

Mohamad Idham said workers in Kuala Lumpur, Selangor, Penang and Putrajaya struggle to cover essential expenses despite recent wage hikes.

– MASRY CHE ANI/THESUN

consumption, which could stimulate business activity and job creation over time, he said. However, he cautioned that such a system must be designed carefully to avoid discouraging investment in higher-cost regions or creating excessive administrative burdens. He said the first concrete step should be the development of a transparent, data driven living wage benchmark for different regions, based on regularly updated cost of-living baskets. “This should be accompanied by structured dialogue with employers, worker representatives and industry groups to agree on a realistic transition path.” Mohamad Idham added that a pilot programme or phased rollout, combined with productivity-enhancing support for businesses, would help ensure that any move towards a living wage framework is both economically sustainable and socially credible. Recent data from the Department of Statistics Malaysia on the 2024 Basic Expenditure of Decent Living Index shows that Selangor recorded the highest indices across household sizes, while Kelantan, Kedah, and Perlis were among the lowest.

under the Minimum Wages Order 2024, designed to boost income levels. Addressing concerns that higher wages could increase business costs and lead to job losses, Mohamad Idham said international evidence suggests otherwise, provided wage increases are moderate and well-calibrated. “Many firms respond by improving productivity, making modest price adjustments or benefiting from lower employee turnover,” he said, adding that large-scale unemployment is not an automatic outcome of wage increases. In the Malaysian context, he stressed that any move towards higher wages should be gradual and supported by targeted measures such as assistance for small and medium enterprises, automation incentives and productivity upgrades. “The key is careful phasing rather than abrupt, large increases.” Mohamad Idham also said a location based living wage could help narrow income inequality by ensuring wages better reflect local living costs, particularly in expensive urban areas. Higher disposable incomes among lower wage workers would likely strengthen domestic

‘Exhausting cycle of month-to-month survival’ PETALING JAYA: For many young workers in Greater Kuala Lumpur earning a salary no longer guarantees financial stability – only survival. further strain, spending up to RM100 a month on creative tools, petrol, tolls and software. “These aren’t optional. They’re tools I need to do my job.” and eating, with little room for personal growth.

meal costs around RM10 and five days a week adds up quickly. Unexpected costs make it even harder to manage expenses. There are times when I end up dipping into my savings just to get through the month, which is worrying because savings are supposed to be for emergencies.” Lim Wei Jun, 37, a customer service representative and parent of three, spoke about supporting a family with one child still in school. “After paying rent, food, bills and school-related expenses, there is very little left. Most of the time we are living month to month,” he said, adding that food and education costs hurt the most. He also said rising costs have outpaced income, leaving little room for extras such as outings, treats or family trips. – By Kirtinee Ramesh

“No matter how careful I am, my money just doesn’t stretch as far as it used to.” Asked about living a “decent life”, she said it feels more like constant survival. “I can manage the basics, but there’s ongoing stress about money and very little room to enjoy life. “If wages reflected the real cost of living, I could save properly, worry less about unexpected expenses and actually think about my future instead of just getting through the month.” Manisha Dharan, 29, a human resource assistant, echoed these concerns. Even after budgeting for fuel, phone bills, entertainment and savings, she is left with about RM200 to survive each month. “Food alone is expensive. A simple

“I can’t hang out with friends, I can’t afford hobbies – I’m barely surviving. Cheap food usually means unhealthy food. I’ve fallen sick so many times, but I can’t afford better healthcare.” Elvina Lucia, 26, a paralegal, said she manages to get by, but only with strict budgeting. “After paying for food and bills, I do have a small amount left, but I have to be very careful with spending.” Bills are her biggest pressure, and her salary has not kept pace with rising living costs. “Everything feels more expensive now – food, transport, even basic necessities – but my salary hasn’t increased in the same way.

Mohd Johhari Mohd Kamarruddin, 25, a creative associate at an advertising firm, said after paying his monthly bills he is often left with less than RM1,000 for daily food and emergencies, a figure that continues to shrink amid rising costs. “A large part of my salary goes to supporting my family, bills, loans and rent. By month’s end, I usually have less than RM100 left. “Rising petrol and toll costs have made it even harder to manage, forcing me to cut back on essentials like entertainment, insurance and other necessities.” He said work-related expenses add

His frustrations grow as his duties extend beyond his original role as a graphic designer to include marketing, media releases, writing and event work. “I don’t think I’m being paid fairly for what I do. I’m staying only to complete at least two years before moving on.” Johhari believes a minimum of RM3,500 is needed to survive in Greater KL. “Anything below that feels like modern-day labour exploitation.” He described his life as an exhausting cycle of sleeping, working