KUALA LUMPUR, March 20 — Malaysia’s middle-income (M40) group has yet to fully benefit from economic growth, with many still facing cost of living pressures, Bank Negara Malaysia governor Datuk Seri Abdul Rasheed Ghaffour said.

According to a report by Berita Harian, he said stagnant wages among the group require labour market reforms to create higher-value jobs with better pay.

“The government’s main focus is to create high-value jobs that can offer better wages,” he was quoted as saying.

“When the economy shifts towards higher value-added activities, it requires new skills. These types of jobs will automatically offer more attractive income packages compared to low-skilled work.

“When we are able to create more high-quality jobs, this will encourage the entire economy to move together,” he reportedly added.

Abdul Rasheed reportedly encouraged the M40 group to reskill and upskill to take on higher value-added roles with better pay.

He added that increases in the minimum wage would gradually lift salary structures across the board over two to three years, placing pressure on other sectors to raise wages.

He stressed that wage growth must be supported by higher productivity, warning that increases without productivity gains could lead to inflation.

“Labour market reform is a long-term agenda. However, it is one of the critical steps to ensure the M40 group can enjoy a better standard of living in the future,” he said.