Kuala Lampur, Sept. 22 -- Malaysia's labour market is entering a new phase as the government seeks to move beyond periodic minimum-wage adjustments towards more sustainable wage progression. At the centre of this effort is the Progressive Wage Policy (PWP), which links salary growth to employees' skills, training, productivity and career advancement. The policy is voluntary and incentive-based, and it complements rather than replaces the statutory minimum wage. Its central idea is straightforward: employees should have a clearer pathway to higher pay as they acquire relevant competencies and contribute more effectively to organisational performance.

This distinction is important. The minimum wage establishes a legal wage floor, while the...