KOTA KINABALU: The implementation of the RM1,700 minimum wage for companies with more than five employees is a long-awaited relief for workers in Sabah, but concerns remain over wage disparities and employer preparedness.
Sabah Bank Employees Union (SBEU) president Margaret Chin stressed that Sabah workers have long faced delays in receiving benefits compared to their counterparts in Peninsular Malaysia.
"We hope Sabah workers are treated equally. Do not penalise us due to poor infrastructure, which affects worker performance and productivity," she said.
She also urged the government to consider the cost of living when implementing regional minimum wages.
"If regional minimum wages are introduced, factors such as the cost of living and poverty line index must be taken into account.
“Kota Kinabalu has one of the highest living costs in the country. Minimum wages here should be on par with Kuala Lumpur or Johor to reflect this reality," said Chin, who is also the Malaysian Trades Union Congress (MTUC) Sabah division vice president.
Chin further called on small and medium enterprise (SME) operators to adopt a long-term strategy for staff salaries and benefits rather than reacting negatively to each wage adjustment.
"Employers should not be caught off guard whenever the minimum wage is revised. We need a sustainable approach to wages that supports both businesses and workers," she said.
She stressed that ensuring fair wages is key to retaining young and senior talent in Sabah and strengthening the state’s workforce for the future.
The RM1,700 minimum wage across Malaysia took effect on Feb 1 this year, marking a 13.3% increase from the previous rate of RM1,500.
Employers who fail to comply face severe penalties, including fines of up to RM10,000 per employee for the first offence and an additional RM10,000 for each subsequent violation.
Persistent non-compliance after conviction may result in a daily fine of up to RM1,000, while repeat offenders risk fines of up to RM20,000 or imprisonment for up to five years.
