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BANDAR SERI BEGAWAN (Borneo Bulletin/Asia News Network): While the public was generally positive in response to the announcement of minimum wage policies being rolled out by the government, some are concerned about knock-on effects it would have on businesses.
During a decree on Saturday (July 15), Sultan Hassanal Bolkiah announced the introduction of the minimum wage in phases across all industries in the private sector, in alignment with the best practices at regional and international levels.
Nazim, a 38-year-old working at an information and technology (IT) company, believes that the announcement reflects a commitment to ensuring the welfare and well-being of local employees.
He believes that the minimum wage will promote fair labour practices and improve the livelihood of workers.
However, while the policy may have positive effects on individuals, it could also pose a problem for businesses, particularly small and medium enterprises, said the IT worker.
The implementation of the minimum wage may increase labour costs, potentially affecting a company’s competitiveness, he said.
“There is a need to strike a balance between fair wages and economic sustainability, taking into account the diverse needs of workers and businesses,” he said.
Mohd Jamal, a self-employed man in his mid-40s, said the minimum wage policy will motivate locals to work in the private sector.
Some in the private sector are receiving a monthly salary of less than BND500, and are struggling against inflation, he added.
Meanwhile, private sector employee Abdul said it would increase worker salary. However, he fears that it will also trigger businesses to increase the price of goods. Nasi katok, for example, may cost more than it is now, he said.
Ameer, a 28-year-old teacher at a private school, believes the establishment of a minimum wage is timely.
He called on employers not to set wages below BND500 or offer lower wages than the qualifications of employees. The teacher said he had also accepted a starting salary of below BND500.
While it has since risen, he continues to look for better opportunities.
Muqri, a retail shop worker in his 20s, views the introduction of the new policy positively.
However, he suggested there is a need for clear guidelines on who qualifies for the minimum wage, as the public has diverse opinions on the recent announcement.
