PUTRAJAYA, Oct 28 — The move to raise the minimum wage rate to RM1,700 reflects the political determination of the unity government, said Prime Minister Datuk Seri Anwar Ibrahim.

Anwar, who is also the Minister of Finance, described the decision to raise the minimum wage as bold, noting that waiting for companies alone to decide would prevent any progress.

"If I leave it to the companies, there would be no decision—it’s impossible to reach one that way. So, I discussed it with my friends in the Cabinet. The country is doing well, investments are coming in significantly, and a prosperous nation cannot afford to see this sort of treatment to our workers.

"We are not RM500 or RM3,000, we are going from RM1,500 to RM1,700,” he said at the launch of Putrajaya MADANI Residency Housing Development here today, which was also attended by the Minister in the Prime Minister’s Department (Federal Territory) Dr Zaliha Mustafa and Minister of Housing and Local Government Nga Kor Ming.

The Prime Minister expressed hope that all companies will cooperate in implementing the new minimum wage rates, which will take effect in February next year.

When tabling Budget 2025 last Oct 18, Anwar announced that the government agreed to raise the minimum wage rate from RM1,500 per month to RM1,700 per month which will take effect on Feb 1, 2025.

The government also decided to postpone the minimum wage of RM1,700 for employers with less than five employees for six months.

Regarding the 15 per cent salary adjustment of civil servants for the implementation group in the Civil Service Remuneration Scheme (SSPA) which starts this Dec 1, Anwar said civil servants need to be more responsible for their work.

He said the civil servant salary adjustment would see an increase in salary costs of more than RM10 billion.

Addressing criticisms from some quarters that Budget 2025 lacks mega projects or iconic landmarks, the Prime Minister said, "For me, mega projects are people’s housing, stalls, quality school facilities, and good healthcare.”

He also said that everyone must shift their mindset and embrace a new economic framework focused on fostering fresh and dynamic growth.

"If the economy does not grow, where will we find the funds? I do not underestimate the importance of growth.

"It is essential for civil servants, political leaders, and business people to step up and help small groups succeed, as this will prevent the gap between the rich and the poor from widening,” he said.

Anwar said efforts to eradicate hardcore poverty will be accelerated as there are poor families who cannot afford basic food, baby milk and school uniforms.

"So the government must not delay, it is a responsibility that needs to be fulfilled. It is not reasonable for a prosperous country like this, which has recorded growth, has a lot of revenue, (but) hardcore poverty is high,” he said. — Bernama