PETALING JAYA: As outlined in Budget 2025, the government's focus on economic reform is essential in narrowing the widening disparity between wealth and poverty, ensuring that all Malaysians benefit from the nation's progress.
PayWatch Malaysia president and co-founder Alex Kim said key initiatives such as the Progressive Wage Policy (PWP) play a pivotal role in enhancing wages and strengthening financial security for low- and middle-income earners.
“We applaud the Madani Government’s proactive efforts in reforming the laboir market, with RM200 million allocated to PWP to benefit 50,000 workers. This is an important step towards financial empowerment. At Paywatch, we recognise that access to earned wages is an invaluable tool in helping employees manage their finances more effectively, promoting overall economic resilience. By supporting these national efforts, we remain committed to fostering an inclusive financial ecosystem that contributes to the broader vision of equitable growth for Malaysia,” he added.
He said Budget 2025 demonstrates a prudent approach to managing the nation’s debt, with a focus on gradually reducing the fiscal deficit to 3.8% by next year, in line with the Fiscal Responsibility Act.
“While fiscal consolidation is essential for the country's economic health, it is equally important to address the rising cost of living, which continues to affect many Malaysians. The government’s strategy to broaden its revenue base while introducing targeted subsidies for those who need them most is a timely and necessary measure,” said Kim.
“We believe these initiatives will support Malaysians during this period of economic adjustment. As we continue to see the importance of financial resilience, technologies that enable smarter financial management—such as earned wage access—can play a role in easing household debt burdens and empowering employees to manage their finances better,” he added.
Additionally, he said the focus on Environmental, Social, and Governance (ESG) compliance, coupled with tax incentives, is an encouraging step towards fostering responsible business practices that align economic growth with social and environmental priorities.
“By encouraging sustainable practices, these policies will drive progress not only for businesses but for society as a whole.” said Kim, adding that even as the economy grows, they know that many Malaysians are still grappling with the pressures of rising costs.
“ The government’s recognition of this challenge, reflected in Budget 2025, is crucial,” he said, adding that initiatives like the expansion of targeted subsidies and the enhancement of the Budi Madani assistance programme—providing up to RM200 a month for lower-income households—are steps in the right direction to ease the financial strain on those who need it most.
Kim said that its important that they continue to find ways to help Malaysians better manage the impact of these economic pressures.
“We truly believe that by supporting people in accessing their wages and financial resources more flexibly can offer a sense of stability during uncertain times. The goal is to ensure that, together, we create an environment where everyone can better manage the challenges ahead,” he added.
“Malaysia’s economic momentum, particularly with the strengthening ringgit, is an encouraging sign of growth and rising consumer confidence. Budget 2025’s emphasis on supporting SMEs through tax incentives, investing in digital infrastructure, and rolling out financial literacy programs nationwide is essential to keeping this momentum going and ensuring long-term resilience.
As a company focused on financial well-being, we believe that empowering individuals with better access to their earnings contributes to a more financially secure workforce. When people have greater control over their finances, it strengthens both consumer confidence and spending power—key elements for sustaining economic growth. We are committed to supporting these national efforts and believe that by working together, we can build a more inclusive and resilient financial ecosystem that benefits all Malaysians.” said Kim.
