In line with the Ekonomi MADANI Framework of Raising the Ceiling and Raising the Floor to Elevate Employees’ Living Standards, Wellbeing and Productivity

PUTRAJAYA, 1 May 2025 – Government-Linked Investment Companies (“GLICs”) have collectively implemented the living wage policy for all their permanent Malaysian employees. The GLICs that have fulfilled the commitment to the living wage policy where all their permanent Malaysian employees now earn more than the monthly living wage include Khazanah Nasional Berhad (“Khazanah”), Permodalan Nasional Berhad (“PNB”), the Employees Provident Fund (“EPF”), Kumpulan Wang Persaraan (Diperbadankan) (“KWAP”), Lembaga Tabung Angkatan Tentera (“LTAT”) and Lembaga Tabung Haji (“TH”).

“Delivering on the vision of Ekonomi MADANI requires a whole-of-nation approach, with the corporate sector playing a vital role. The collective move by GLICs to implement living wage is an important step to ‘raise the floor’, ensuring that growth is both inclusive and firmly rooted in the well-being of Malaysians,” said YB Senator Datuk Seri Amir Hamzah Azizan, Finance Minister II.

The implementation of the living wage commitment is part of the GEAR-uP initiative led by the Ministry of Finance (“MOF”) under the Ekonomi MADANI framework that seeks synergised efforts across GLICs to catalyse growth in key economic sectors in Malaysia, with the dual objectives of “raising the ceiling” and “raising the floor”. Based on comparative analysis of industry wages and cost of living standards outlined in the Belanjawanku 2024/2025 Expenditure Guide, the benchmark living wage has been set at approximately RM3,100 monthly, which is higher than the RM1,700 monthly minimum wage announced in Budget 2025 and implemented on 1 February 2025.

The Belanjawanku Expenditure Guide, which was jointly developed by EPF and the Social Wellbeing Research Centre, University Malaya, provides estimates of minimum monthly expenses needed for a good standard of living. The living wage approach empowers employers to offer total compensation that goes beyond base salary, encompassing a range of benefits that enhance an individual’s quality of life, including healthcare, retirement plans, and savings mechanisms.

Permodalan Nasional Berhad (PNB)

Pursuant to the earlier commitment given to this initiative, PNB has adjusted the salary for all its workforce, ensuring that all employees now earn above the living wage.

“We are pleased to have delivered our commitment to the living wage initiative. Our focus now is on our key strategic Government-Linked Companies (GLCs), for them to firstly adopt the minimum wage policy and then implement the policy based on the timelines agreed.”

“Since 2023, we have been constantly engaging with our GLCs on the living wage framework, proactively urging them to commit to the Living Wage Policy and accelerate their implementation. To date, three of our strategic companies have established a Living Wage Policy, and we target all our strategic companies to adopt and commit to the Living Wage Policy by 2026", said Dato’ Abdul Rahman Ahmad, President & Group Chief Executive of PNB.

PNB introduced its Living Wage Framework in 2023 within the organisation as a commitment to social responsibility and employee well-being. In January 2025, it refined its voting guidelines, encouraging investee companies to explore and adopt the framework. PNB recognises that the diverse and complex industries in which GLCs and Corporate Malaysia are involved in require differing time for implementation, but believes all companies should commit to a clear path in ensuring all their employees earn a fair wage to have an acceptable living standard.

Khazanah Nasional Berhad (“Khazanah”)

In line with its Malaysia strategy anchored on “A Nation That Creates” framework to advance Malaysia’s next phase of economic transformation, Khazanah is committed to supporting the aspirations of Ekonomi MADANI, particularly in raising both the floor and the ceiling for Malaysians. Khazanah has fulfilled its commitment to provide a living wage for its employees and is actively engaging with the core holdings within its portfolio to embed living wage practices across their operations.

Khazanah believes that every individual should have access to an income that ensures a dignified standard of living and enables meaningful participation in society. A living wage not only supports individual wellbeing and resilience during times of hardship but also strengthens the capacity to plan for the future, including retirement.

“Khazanah is committed to leading by example and has fully implemented living wage within our own operations, while ten (10) of our core holdings have committed to implementing the living wage. We will continue to promote greater awareness and adoption with the rest of our portfolio companies. Supporting the living wage is key in boosting productivity, building stronger and resilient businesses that contribute to a stable, equitable and a sustainable development path for Malaysia,” said Dato’ Amirul Feisal Wan Zahir, Managing Director of Khazanah.

Employees Provident Fund (“EPF”)

EPF has committed to the implementation of a Living Wage Framework across the organisation, guided by its own Belanjawanku Expenditure Guide, a nationally recognised benchmark for a decent standard of living in Malaysia. This move is closely aligned with the Government’s aspirations under the Ekonomi MADANI framework to “Raise the Floor” by improving wage levels and increasing the labour share of income to 45%.

“As the custodian of retirement savings for over 16 million Malaysians, we believe the responsibility to drive income adequacy starts with us. By ensuring that all employees earn a living wage, we are reinforcing our mission to build a resilient and inclusive retirement ecosystem, one that begins with fair pay today to secure adequate income tomorrow,” said EPF Chief Executive Officer Ahmad Zulqarnain Onn.

“This commitment affirms the dignity of work and sets a meaningful standard for employers across the country. Ultimately, improved wages uplift quality of life and translate into stronger retirement savings, ensuring future needs are met with dignity.”

He added that the EPF will also collaborate with its investee companies and ecosystem partners to encourage adoption of similar frameworks, supporting a more inclusive and equitable economic future for all Malaysians.

Kumpulan Wang Persaraan (Diperbadankan) (“KWAP”)

KWAP is reaffirming its commitment to sustainable and inclusive economic progress, having implemented a living wage across its organisation and subsidiaries. KWAP views this step as an enhancement of employee welfare and as a strategic move aligned with long-term national goals under the Ekonomi MADANI framework.

“At KWAP, we view economic resilience as fundamentally linked to the well-being of our workforce. The implementation of a living wage is a clear expression of our commitment to uplift the standard of living of our employees in line with national aspirations. As the custodian of Malaysia’s largest public sector pension fund, we are focused not only on delivering sustainable financial returns, but also on supporting the people who enable our long-term value creation,” said Datuk Hajah Nik Amlizan Mohamed, Chief Executive Officer of KWAP.

Lembaga Tabung Angkatan Tentera (“LTAT”)

LTAT’s commitment to the RM3,100 living wage reflects our enduring mission to protect and uplift those who serve the nation—both in uniform and in the workforce. This pledge is not just a financial benchmark; it is a reaffirmation of our belief that those who contribute to national service, directly or indirectly, deserve a decent and dignified life.

LTAT is addressing this matter through a review in 2025, extending beyond salary structure revisions to include non-salary elements that holistically support staff welfare. These enhancements form part of LTAT’s broader strategy to strengthen long-term security for every individual under its care. Importantly, our commitment extends not only to our employees but also to their families, recognising that a dignified life must encompass household well-being, not just individual earnings.

“For LTAT, whose investments are deeply anchored in the national development agenda, this commitment is both a moral obligation and a strategic imperative. It reinforces economic resilience from the ground up — starting with the individuals who form the backbone of our operations. As a GLIC, we are fully cognisant of our role in shaping a more equitable future, and we will ensure this commitment resonates across our ecosystem by encouraging our investee companies and associates to echo this move,” said Mohammad Ashraf Md. Radzi, Chief Executive.

Lembaga Tabung Haji (“TH”)

Lembaga Tabung Haji (“TH”) is committed towards ensuring the welfare of its people and supports the living wage initiative.

TH has implemented the living wage initiative and will strive to improve from time to time. TH will also collaborate with its Group of Companies for greater impact. As an Islamic financial institution, investing in its people is in line with the higher objectives of Maqasid Shariah, which underpins TH’s Stewardship Framework.

This collective move by the GLICs marks a significant step towards fostering a more equitable and prosperous Malaysia, underscoring the importance of collaboration in achieving the goals of the Ekonomi MADANI framework, paving the way for a brighter and better future for all Malaysians.

-End-