Economy Ministry must bridge gap between GDP figures and people’s lived reality, says minister

PUTRAJAYA, July 27 — Economy Minister Akmal Nasir Nasrullah today said his ministry must address the perception “gap” between the country’s growth data and what is felt on the ground.

Speaking at the ministry’s monthly assembly here, Akmal pointed to the salary-productivity relationship as a glaring example of this gap.

In May, the manufacturing sector recorded a 7.7 per cent productivity growth per worker, yet salaries grew only by 1.8 per cent in the same period, Akmal revealed.

“GDP is just a question of numbers and will continue to be a challenge to us (the ministry) to ensure it actually benefits the people,” he said.

“So we can peddle the growth numbers, even if we should be grateful for it, even if it surpasses the world, the reality is we need to assess its impact on the real world and this isn’t an easy topic.”

Malaysia’s economy exceeded expectations for a second consecutive quarter, growing 5.4 per cent in the first quarter of 2026 despite heightened global uncertainty arising from the conflict in West Asia.

Malaysia’s economy could expand by 5.8 per cent year-on-year in the second quarter, according to advance estimates released by the Department of Statistics Malaysia (DOSM) earlier this month.

To Akmal, the positive growth numbers should enable a tougher discussion on key issues such as stagnant wages.

“When I put this topic out the question that immediately arises is always ‘what can the government do?’. If we don’t address this, if we fail to heed the people’s concerns, it would continue to create an unhealthy perception gap between the government, industries, and workers,” he said.

“So the target we are aiming for under the 13th Malaysian Plan, by 2030, we want to push the median salary to be RM3,300,” the minister added.

Akmal’s predecessor Datuk Seri Rafizi Ramli was widely credited with introducing the Progressive Wage Policy (PWP), a major labour market reform the ministry said is aimed at fixing structural wage stagnation, bridging the productivity-salary disconnect, and elevating median incomes across the country.

While tools like the National Minimum Wage Order established a baseline pay floor, they often resulted in wage compression — where starting pay for fresh graduates and semi-skilled workers hovered barely above the minimum wage.