KUALA LUMPUR (Dec 26): SD Guthrie Bhd (KL:SDG) has committed to developing a living wage policy for its Malaysian operations, with the framework expected to be finalised in the first quarter of 2026.

In a statement on Friday, the group said the policy will be implemented in phases, beginning with about 8,000 non-plantation employees. The first phase is targeted for completion by December 2026 and will be aligned with the Employees Provident Fund’s Belanjawanku Expenditure Guide. 

The initiative aims to ensure more equitable pay while supporting broader socio-economic objectives in Malaysia. The move is part of major shareholder Permodalan Nasional Bhd and other government-linked investment companies’ plan to adopt living wage policies under the government’s Government-linked Enterprises Activation and Reform Programme (GEAR-uP) led by the Finance Ministry.

SD Guthrie said the policy will take into account its existing labour-related commitments and international standards it has signed up to, including compliance with Malaysian labour laws such as the Employees’ Minimum Standards of Housing, Accommodations and Amenities Act 1990 (Act 446), as amended in 2019. 

It will also consider regional cost-of-living differences and the value of existing employee benefits.

The group said it also adheres to standards set by the Roundtable on Sustainable Palm Oil and the International Labour Organization.

SD Guthrie’s Malaysian operations span 11 states, covering 121 estates, 31 mills, and downstream as well as renewable energy facilities. The group employs more than 35,000 workers from several countries. 

The group's shares rose 1.25% to RM5.69 at market close on Friday, giving it a market value of RM39.35 billion. The stock is up 14.95% this year.