Salaries

Economists have cautioned that replicating Johor’s premium wage initiative—which targets starting salaries of RM4,000 for graduates—across other Malaysian states remains difficult due to structural disparities in regional industrial bases. While Johor’s model leverages proximity to Singapore and high-value investment zones, analysts note that sustainable wage growth elsewhere requires significant shifts in productivity, technological adoption, and industry-specific competitive advantages.

Why a national wage benchmark is unlikely

Setting a RM4,000 starting salary as a national benchmark is currently unfeasible for many regions, according to Samirul Ariff Othman of Universiti Teknologi Petronas. He explains that while large multinational companies in states like Johor, Penang, or Selangor may support such figures, small-to-medium enterprises (SMEs) in other areas often rely on labour-intensive industries that generate employment without the corresponding high margins.

Sustainable wage increases are tied to productivity gains through innovation and management practices. Without industrial upgrading, forcing higher salary floors risks placing an unsustainable burden on smaller businesses.

The rising value of technical skills

The labour market is experiencing a shift where technical and vocational graduates are increasingly in high demand. Samirul notes that in specific industries, modern manufacturing requires technicians with specialized skills so urgently that they are now harder to find than degree holders. Consequently, these skilled technicians can command salaries between RM4,000 and RM5,000.

The primary hurdle remains the alignment of technical and vocational education and training (TVET) programs with actual industry needs. Ensuring that curriculum keeps pace with modern manufacturing requirements is essential to prevent the production of graduates with obsolete skill sets.

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Did You Know?
In Johor, the state government’s wage initiative is bolstered by the specific development of the Johor-Singapore special economic zone, which aims to attract high-value investments and dynamic firms capable of nurturing and retaining skilled talent.

Expert Insight:
The disparity between Johor’s wage potential and other states highlights a fundamental trade-off in regional economic policy. While states like Penang and Sarawak can leverage their established electronics and hydropower sectors respectively, those lacking specialized high-value industries face a steeper path to productivity. Wage growth is not merely a policy decision; it is a downstream effect of successfully attracting industries that demand—and can afford—high-level human capital.

What happens next for regional industries

A possible next step for other states is to identify and capitalize on their own unique competitive advantages rather than attempting to mirror Johor’s model directly. Yeah Kim Leng of Sunway University suggests that states must focus on their specific economic strengths—such as Penang’s electronics cluster or Sarawak’s energy-intensive sectors—to draw the high-value firms necessary to drive up local wages.

Moving forward, the success of these wage initiatives will likely depend on the integration of three factors: talent development, TVET reform, and industrial upgrading. If these three elements do not move in tandem, experts suggest that wage increases will remain isolated successes rather than a nationwide trend.

Frequently Asked Questions

Can every state in Malaysia adopt the RM4,000 starting salary model?
According to Samirul Ariff Othman, it would be difficult for other states to emulate this, as many currently rely on labour-intensive industries that do not support such high wage levels without significant productivity gains.

What is the salary outlook for TVET graduates?
TVET graduates in selected industries can earn between RM4,000 and RM5,000, as specialized technicians are becoming increasingly difficult to source for modern manufacturing roles.

What are the specific advantages driving Johor’s wage growth?
Yeah Kim Leng identifies Johor’s proximity to Singapore and the collaborative efforts between the two governments to attract high-value industries to the special economic zone as critical, unique factors.

Do you believe that focusing on specialized technical training is the most effective way to address the current salary gap in your region?

Indonesian President Prabowo Subianto has pledged to raise the salaries of employees within the judiciary, specifically targeting court clerks, administrative staff, and other court personnel.

The announcement was made during a speech at the Attorney General’s Office on Wednesday, May 13, 2026. The decision follows a reminder from Chief Justice Sunarto, who noted that while judges had received pay increases, other essential court staff had been overlooked.

“The Chief Justice told me, ‘Sir, thank you for your attention to the judges, but it turns out that in our courts we still have other personnel, the court clerk’s salaries have not been raised, then there are staff, administrative staff,'” President Prabowo stated.

Addressing Judicial Integrity and Funding

The President, who also serves as the Chairperson of the Gerindra Party, has instructed Minister of Finance Purbaya Yudhi Sadewa to review the proposal for these salary increases. Prabowo emphasized that “the Minister of Finance should find funding for all court employees to have a salary increase.”

This move is part of a broader strategy to uphold law and justice. In 2025, the administration previously increased the salaries of some judges by up to 280 percent. This earlier decision was discussed on Friday, August 15, 2025, during the Annual Session of the House of Representatives (DPR) at the Parliament Complex’s Nusantara Building in Jakarta.

At that time, the former defense minister explained that ensuring judges’ salaries are “in good condition” is a crucial factor in upholding the law. Regarding the previous increases, he stated, “We have increased the salaries of some judges by up to 280 percent. We also have no qualms about uncovering major corruption cases.”

Public Accountability

Alongside the promise of higher pay, President Prabowo issued a stern reminder to judges regarding the necessity of delivering fair verdicts. He warned that the public is not ignorant and will scrutinize judicial outcomes.

Prabowo Immediately Orders Purbaya to Find Funds to Increase the Salaries of Judges and Court Staff

“Remember, your verdicts will be judged by the people. Your verdicts will be studied. And our society and people are not ignorant. They will see and they will feel any injustice,” he said.

Potential Next Steps

Following the President’s directive, the Ministry of Finance is likely to evaluate the budget to determine how the proposed salary increases for court clerks and administrative staff can be funded. The implementation of these raises may depend on the results of this financial review.

Why Johor’s High-Wage Model Is Hard to Replicate