Deputy human resources minister Abdul Rahman Mohamad said the study is being conducted in close collaboration with industrial stakeholders.

“This includes assessing the implications of this proposal on small and medium enterprises, as well as the need for a standardised productivity measurement method across sectors to ensure policies are implemented fairly and sustainably,” he said when winding up the committee-stage debate on the Supply (Budget) Bill 2026 for his ministry.

The council, established under the National Wages Consultative Council Act 2011, is involved in wage-related negotiations between the government, workers and employers.

TVET reduces dependency on foreign workers

Separately, Rahman also said technical and vocational education and training programmes could help reduce Malaysia’s dependency on foreign labour by creating a more competent domestic workforce for critical sectors such as construction, manufacturing, maritime, automation and semiconductors.

He also said industry-based training, nationally standardised certification and reskilling and upskilling programmes responsive to industrial needs could help local talents fill vacancies for high-skilled jobs.

“These approaches, done in stages, can strengthen the domestic workforce’s capacity through the Academy in Industry (programme), where companies train domestic workers in their facilities using industrial standards.