21/08/2026

FRIDAY | AUG 21, 2026

2

KL-bound plane aborts takeoff at Narita airport CHIBA: A Kuala Lumpur-bound Malaysian Airlines plane aborted takeoff on Thursday morning at Narita airport near Tokyo due to a problem with the aircraft, according to Kyodo News. Black smoke was reportedly seen coming from the airplane when it was moving onto one of the runways at about 10.40am local time. Airport authorities said the incident prompted the closure of the runway affected, that is currently being inspected, Xinhua reported. The plane was carrying a total of 160 passengers and crew members, and there have been no reports of injuries, the report said. – Bernama-Kyodo/Xinhua

Anwar with content creators at the TikTok Shop Summit 2026 in Kuala Lumpur yesterday. – BERNAMAPIC

adjustment has to happen at company level. She pointed to the wide gaps that could exist between the highest and lowest-paid workers in an organisation, adding that companies should examine whether such disparities are excessive. “I’m not saying that everyone should be paid equally. Of course, wages have to correspond with productivity. I personally hope that the increase in wages is at least equal to inflation, or higher, so that our standard of living actually improves.” Ida said raising the statutory minimum wage alone would not resolve Malaysia’s broader labour market problems, particularly if employers continue to underpay workers. She said enforcement against illegal underpayment, including cases involving foreign workers, should remain important to ensure that higher wage floors translate into better wages. – By HARITH KAMAL PM: SST adjustments to ensure tax burden on poor not hiked KUALA LUMPUR: The government will not consider the basic principle of the Goods and Services Tax (GST) as a broad-based tax, but will remain open to making adjustments to improve the implementation of the Sales and Service Tax (SST), said Prime Minister Datuk Seri Anwar Ibrahim. He said the government could consider some components of GST, stressing that the core principle is not to increase the tax burden on the poorest segment of the population. “I’m not prepared to consider the basic essence of GST because it is still a broad-based tax. “ “It will impose tax on every single citizen, including the poorest of the rakyat . So, that principle must be observed,” he said after officiating at the TikTok Shop Summit 2026 yesterday. Anwar, who is also Finance minister, had earlier announced that the government was considering reforming its consumption tax regime to make it more progressive and efficient, including potentially reintroducing aspects of a broad-based GST. The issue has been widely discussed, with various proposals highlighted, including a tax on electronic payment transactions to broaden tax revenue as well as bringing back GST to enable the government to achieve its fiscal targets. Malaysia adopted the SST regime after moving away from GST in 2018 amid an outcry over rising living costs. “Whether we need to make some adjustments to improve the implementation of SST or some components of GST, of course, we can do that. “But the core principle of this Madani government is not to increase taxes on the very poor. “Therefore, the GST principle cannot be considered.” – Bernama

‘Wage policy must allow savings, not just pay bills’

He added that a broader policy discussion could involve an adequate wage of about RM2,500 to RM3,000 by 2030, stressing that this should not be treated as a formal estimate from his housing study. He said the range could serve as a policy discussion benchmark for moving beyond subsistence towards financial resilience and asset accumulation, subject to proper research into living costs, productivity, household composition and savings needs. Najib said Malaysia is effectively facing two affordability problems at once – a gap between wages and the cost of living, and another between household incomes and asset prices. “Minimum-wage increases may help workers meet current expenses but housing affordability will remain difficult if house prices continue to rise faster than household savings capacity.” He said a successful wage policy should not be judged only by whether workers could survive from one month to the next. “It should also consider whether employment provides a realistic pathway from income to savings, home deposit accumulation and long-term household wealth.” He added that without that shift, Malaysia could see wages rise while workers remain unable to accumulate the assets needed to improve their long-term financial security.

o Salaries must be adequate for wealth growth, financial cushioning and owning a home, says academic

█ BY HARITH KAMAL newsdesk@thesundaily.com

higher living costs, workers may earn more in nominal terms but still have little capacity to save for a housing deposit. “In this situation, wage growth does not translate into wealth growth.” Najib had previously projected that Malaysia’s average house price could rise from about RM506,277 in 2025 to between RM558,971 and RM677,513 by 2030, depending on annual price growth. He added that if the RM1,700 minimum wage merely rose at the same pace as house prices, it would need to reach about RM1,877 under a 2% annual house-price growth scenario, RM2,068 under 4% growth and RM2,275 under 6% growth by 2030. He said this means a wage of about RM2,300 could be viewed as a defensive benchmark simply to keep pace with the highest housing-price growth scenario. Najib said RM2,300 would not necessarily make home ownership affordable. He said higher living costs could absorb much of any wage increase before workers have a chance to build sufficient savings for a housing deposit.

PETALING JAYA: The minimum wage review should not be based solely on whether workers could meet their monthly expenses, said an expert in property economics and finance. Universiti Teknologi Malaysia associate professor Dr Muhammad Najib Razali said wages must also be adequate for enabling savings, financial cushioning and eventually, owning a home. He said wages that merely cover food, rent, transport and utilities could leave workers trapped in a cycle in which their salaries increase on paper but their financial position barely improves. “An adequate wage should also leave enough disposable income for savings, financial resilience and eventual asset ownership.” Najib said the distinction is important because wage growth does not automatically translate into wealth growth. “If wage increases are largely absorbed by

‘Raise minimum salary but adjust pay scales for different levels too’ PETALING JAYA: If Malaysia raises the RM1,700 minimum wage without adjusting pay scales further up the chain, graduates and skilled employees could end up earning barely more than those at entry level, said an academic. “If the government wants to increase the minimum wage, the increase should not only apply to the lowest rank in an organisation. Wages across the other ranks should also be adjusted accordingly.” person to live decently in Kuala Lumpur. “What more now, with inflation having increased due to rising oil prices and other factors.” She added that the problem extends beyond minimum-wage workers, with some graduates and skilled workers receiving salaries that do not adequately reflect their qualifications.

She was commenting on Human Resources Minister Datuk Seri R. Ramanan’s statement that the government is reviewing the RM1,700 minimum wage, with the National Wages Consultative Council to decide whether it should be maintained or raised. Bank Negara Malaysia’s 2018 estimate put the living wage for a single person in Kuala Lumpur at RM2,700 a month. Ida said that figure is already significantly higher than the current minimum wage, with the gap becoming harder to justify as living costs rise. “Even the data from 2018 showed that RM2,700 was probably the basic wage needed for a single

Putra Business School associate professor Dr Ida Md Yasin said any increase in the wage floor would have a ripple effect across organisations, requiring employers to reassess pay for workers at different levels rather than simply increasing salaries at the bottom. “We cannot have a situation in which a graduate earns almost the same as someone at the lowest rank, or perhaps only RM500 more than them.” Ida said the government’s wage review should be more than a question of how much to add to the RM1,700 floor but also how the increase would affect the broader wage structure.

She said sometimes, wages do not reflect the skills employees have but they have no choice because there are not enough job opportunities. Ida said this is particularly concerning as Malaysia pushes towards higher-value industries, in which better-skilled workers should command stronger wages. “If a company is making a profit, we need to look at how that profit is distributed. Some of it can also be used for reinvestment.” Ida said the issue could not be solved through the minimum-wage policy alone as much of the