Institute warns of economic vulnerabilities in Malaysia, urging government action on Johor

Khazanah Research Institute issued warnings regarding economic vulnerabilities in Malaysia, specifically concerning the state of Johor. The Institute noted that about 70% of households are economically vulnerable, meaning they do not feel the prosperity shown in national economic figures. The Institute also stated that two in three Malaysian wage earners work in semi-skilled or low-skilled jobs, with median pay reported at RM2,223 and RM1,758 a month.

The findings suggest that the current situation constitutes a structural affordability crisis that requires urgent attention from the government. The Institute advised that the government must consider real wage growth and stronger social protection rather than relying on one-off cash handouts. The findings urged that the government pay close attention to the economic realities in Johor and Negeri Sembilan ahead of Budget 2027.