KOTA KINABALU: While the overall Budget 2025 is in line with the Madani economic framework, Sabah businesses view raising the minimum wage from RM1,500 to RM1,700 from Feb 1 next year as a hasty move.
Sabah United Chinese Chambers of Commerce (SUCCC) president Datuk Michael Lui said the minimum wage being implemented about the same time as the Progressive Wage Policy that will be fully enforced next year will impact businesses.
“The minimum wage (implementation) is too hasty,” Lui said.
The Progressive Wage Policy is a measure to reform the labour market to ensure wage rates increase in accordance with workers’ skills and performance.
Under the Madani economic framework, the Budget aims to promote sustainable economic reforms, improve governance and elevate the quality of life of all Malaysians.
Prime Minister Datuk Seri Anwar Ibrahim had announced the minimum wage from RM1,500 per month to RM1,700 per month, effective Feb 1 next year when tabling Budget 2025 in Parliament on Friday.
Employers with fewer than five employees would be given till Aug 1, 2025 to meet the requirement.
Meanwhile, Lui welcomed the RM600mil special grants each for Sabah and Sarawak.
A total of RM9.7bil was allocated for the 17 work packages of Pan Borneo Sabah Phase 1B and RM7.4bil for the Sabah-Sarawak link road.
It is aimed at bridging the gap in infrastructure development between the two states and other states in the country.
“We always believe that the most critical is for the government to fulfil the disrupted right for development as stipulated in the 1963 Malaysia Agreement (MA63),” he said in a statement.
Lui noted that the government’s focus on the development of small and medium-sized enterprises in key areas, such as food security, energy transformation and digitalisation is going in the right direction.
“The government also provides RM50mil in matching grants for local entrepreneurs to digitalise (their businesses) and RM3.2bil for micro-loans for small traders.
“SUCCC believes that the government should put more attention on the survival of SMEs because they provide more than 60% of the country’s employment opportunities and 40% of GDP (gross domestic product).”
Lui said with the rising cost of living, Budget 2025 will provide a significant boost to the Sumbangan Tunai Rahmah and Sumbangan Asas Rahmah initiatives next year with allocation rising to RM13bil from RM10bil, which will benefit nine million recipients or 60% of the adult population.
“I believe that many families are still facing inflationary pressures, and it is positive that the government has provided targeted measures such as subsidies and financial assistance to alleviate the huge economic burden on low- and middle-income families.
“Budget 2025 not only affects the formulation of policies but also directly affects the direction of economic development.”
He urged the business community in Sabah to pay close attention to these changes and be prepared to make corresponding adjustments and plans.
