KOTA KINABALU: The government will look into the possibility of setting a more realistic minimum wage according to business sectors, said Human Resources Minister M. Kulasegaran.
The current minimum wage of RM1,100 is across the board for all sectors and some of the businesses which found it too steep have had to lay off workers or close some of their outlets.
“Based on feedback, the ministry has found that the increase is a steep jump that has triggered a higher cost of operations,” he told a press conference after meeting with employers from the Sabah chapter of the Malaysian Employers Federation here yesterday.
“We will consider minimum wage based on sectors, for example, set a minimum wage for plantation, hotels and coffeeshops, among others, to be based on a more realistic minimum wage,” he added.
However, Kulasegaran said the matter would be studied further and brought to the Cabinet for a decision in due course.
His ministry, he said, was also studying the various labour-related laws with an eye to amend and update them to meet current needs.
He also said his ministry would be in discussion with the state government, Sabah employers, workers’ unions and other stakeholders to update the Sabah Labour Ordinance in accordance with the Malaysia Agreement 1963.
He added that he was aware of the calls for a Sabah Labour Action Council to be set up to meet specific requirements faced in the state.
Last November, the government raised the minimum wage from RM1,050 to RM1,100 starting Jan 1, 2019.
The government had initially announced in September that the minimum wage would be increased to RM1,050 nationwide in 2019, but workers were unhappy with the quantum.
Previously, the minimum wage was RM1,000 in the Peninsula and RM920 in Sabah and Sarawak.
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