Minimum wage of RM1.5k not suitable for Sabah, says state MICCI chairman

KOTA KINABALU: The standardisation and increase of minimum wage across the nation to RM1,500 per month is a good move to help employees, said Malaysian International Chamber of Commerce and Industry Sabah Chairman, Datuk Seri Wong Khen Thau.

However, as Sabah is one of the poorest states in the country, he said it would be more feasible to set the minimum wage at RM1,100 for unskilled workers, to start off with.

“The RM1,500 can be the minimum salary for skilled or experienced employees, and those with at least a Diploma,” he said during a press conference here Tuesday (July 31).

Wong said this was to allow employers time to adjust to the increase in wages for their employees, and at the same time let employees enjoy better income.

“If we go straight to RM1,500, irrespective of their qualification, I think businesses would suffer and even go bankrupt,” he said.

He said those who can afford to sustain their business will likely resort to increasing the prices of goods, at the expense of consumers.

Standardising the minimum wage across Peninsular Malaysia, Sabah, Sarawak and Labuan is one of the 10 election pledges made by Pakatan Harapn, which it promised to fulfil in 100 days.

Currently, the minimum wage in Peninsular Malaysia is RM1,000 while in East Malaysia, it is set at RM920.

Pakatan had pledged to set the minimum wage at RM1,500.

Meanwhile, on the state government’s proposal to provide illegal immigrants with some form of documentation so that they can work legally in Sabah, Wong said it was a wise move.

“These workers can contribute to our economy, and for the surplus of these workers in Sabah, I think they can be sent to peninsula Malaysia to work there,” he said.

This way, he said, the federal government does not need to employ workers from Bangladesh or Nepal, as is the current practice.

He also urged the government to amend immigration laws and prohibit citizenship to foreign workers and immigrants in Sabah.