A RECENT report that 70.2% of Malaysian workers earn RM5,000 a month or less has sparked widespread discussion about wages, living costs and economic opportunity.
For many households, RM5,000 may appear reasonable on paper. However, once housing, transport, food, childcare, education, insurance and support for ageing parents are taken into account, there is often little left at the end of the month, particularly in urban areas.
These concerns are understandable. Yet beyond the question of whether RM5,000 is enough lies a more fundamental issue: why do so many Malaysians earn below that threshold in the first place?
Most Malaysians are not short of effort. Many work long hours, hold multiple jobs or take on side income to make ends meet. The real challenge is that upward mobility appears increasingly difficult, even for those who are employed full-time.
Official statistics reflect this reality. According to the Department of Statistics Malaysia (DOSM), the median monthly wage of formal sector employees stood at RM3,167 in December 2025.
Even in Kuala Lumpur, which recorded the highest median wage in the country, the figure was RM4,391.
These numbers help explain why many workers continue to feel financially stretched despite participating in the workforce.
The issue is not confined to any one constituency or city. It is a national concern. Economic growth should not only be reflected in investment figures, skyscrapers and GDP statistics.
It should also translate into better wages, stronger purchasing power and improved quality of life for ordinary Malaysians.
The fact that seven in 10 workers earn RM5,000 or less points to a deeper structural challenge in how Malaysia creates, distributes and rewards economic value.
One of the clearest examples is underemployment. Many young Malaysians complete diploma or degree programmes only to find themselves working in jobs that do not fully utilise their qualifications, skills or potential.
Some graduates have turned to gig economy work while searching for opportunities that better match their educational background.
According to DOSM, approximately 1.6 million graduates were employed below their qualification levels in 2024.
At the same time, skill-related underemployment remained above 30%. More recent labour market data showed that 35.5% of diploma and degree holders were working in semi-skilled or low-skilled occupations.
These figures should concern policymakers and employers alike. When highly educated Malaysians are unable to secure jobs that match their skills, productivity suffers, wage growth slows and the country risks underutilising its human capital.
The solution is not merely to help Malaysians cope with lower incomes. The goal must be to create an economy where more workers can progress beyond them.
This requires greater emphasis on upskilling and reskilling, particularly in high-growth sectors such as artificial intelligence, biotechnology, advanced manufacturing and the digital economy.
Small and medium enterprises must also be supported in adopting technology, improving productivity and moving into higher-value activities. Higher productivity is ultimately what allows businesses to pay higher wages sustainably.
At the same time, Malaysia should continue attracting investments that create quality jobs rather than simply increasing employment numbers.
Success should not be measured solely by investment value, but by whether those investments generate meaningful career opportunities and better incomes for Malaysians.
Education and industry must also work more closely together. Too many graduates leave universities and colleges only to discover that their qualifications do not align with market demand.
Stronger collaboration between employers, training institutions and policymakers is essential to close this gap.
Ultimately, the statistic that seven in 10 workers earn RM5,000 or less should not be viewed merely as another talking point. It is a warning sign.
The real question is not whether Malaysians can survive on RM5,000 a month. It is whether they can build savings, own homes, raise families and look to the future with confidence.
That is the standard by which the success of our economy should be measured. ‒ June 15, 2026
Ben Fong Kok Seng is the chairperson of the Bukit Bintang Parliamentary Zone Residents’ Representative Council.
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
Main image: AFP
