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Sweeping reforms have been outlined in Malaysia’s Human Resources Ministry's 2026 Budget engagement session, with topics such as salary restructuring, graduate pay, and gig worker protections among the 10 initiatives being discussed.
The Ministry of Human Resources (KESUMA) has tabled its 2026 Budget Engagement Session (SLU). The session was attended by YB Steven Sim Chee Keong, Minister of Human Resources, together with YB Dato' Sri Abdul Rahman bin Haji Mohamad, Deputy Minister of Human Resources, alongside the ministry’s top management.
The SLU reflects the MADANI government’s approach in framing a people-centric budget. It also marks the first budget under the 13th Malaysia Plan (RMKe-13), built on three milestones:
- Raising the ceiling: Supporting high-impact industries such as semiconductors, renewable energy, Islamic economy, PMKS, digital and AI.
- Raising the floor: Strengthening education, health, and social protection while addressing cost of living pressures.
- Good governance: Simplifying business processes and improving the quality of public service.
According to a Facebook post by KESUMA, Minister Steven Sim outlined five global megatrends that are set to reshape the labour market:
- Technological advancements such as AI and automation,
- Demographic shifts,
- Geopolitical uncertainties,
- Green economy,
- New ways of working shaped by flexibility and the gig economy.
To address these challenges, KESUMA will roll out 10 game changer initiatives under RMKe-13, among them a comprehensive salary reform to move towards a living wage, clearer guidelines on graduate and TVET graduate salaries, the drafting of the Gig Workers’ Bill, and updates to strengthen the Labour Act.
The ministry shared that the discussion saw more than 1,000 participants from ministries, statutory bodies, companies, academic institutions, the e-hailing sector, NGOs, and banking associations, which it said reflected multi-partisan support for Malaysia’s human resource development agenda.
As noted by KESUMA, this session embodies the principles of welfare, justice and good governance under Malaysia MADANI. Moving forward, the ministry will continue its role as the country’s human resource agent to ensure Budget 2026 is inclusive and beneficial to all.
ALSO READ: KESUMA tables first reading of Gig Workers Bill 2025 in Parliament
Lead image / KESUMA Facebook
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