Planters face wage squeeze

THE labour-intensive oil palm sector will likely face margin pressures from Pakatan Harapan’s election manifesto for a higher minimum wage and to reduce dependence on foreign labour, say analysts.

The new government plans to raise the minimum wage in Sabah and Sarawak to be equal to that of Peninsular Malaysia. It also plans to raise the minimum wage level to RM1,500 per month nationwide during its first term in power and to review this rate every two years.