The RM1,700 minimum wage hike is a much-awaited boost for Sabah workers, but concerns over wage disparity and cost of living persist.

Sabah Malaysian Trades Union Congress (Sabah MTUC) veep Margaret Chin said workers in the state have historically faced delays in wage benefits compared to Peninsular Malaysia when calling for a regional wage system that considers the cost of living and poverty line index.

“We hope Sabah workers are treated equally. Do not penalise us due to poor infrastructure, which affects worker performance and productivity,” said Chin who is also Sabah Bank Employees Union (SBEU) president Chin. 

“Kota Kinabalu has one of the highest living costs in Malaysia. Minimum wages here should match Kuala Lumpur or Johor to reflect this reality,” she said.

Various labour groups argue that a one-size-fits-all wage policy fails to address regional economic differences, making it harder for Sabah to retain skilled workers.

Chin urged SMEs to adopt a long-term wage strategy rather than reacting negatively to each wage revision.

“Employers should not be caught off guard whenever the minimum wage is revised. We need a sustainable approach that supports both businesses and workers,” she said.

The RM1,700 minimum wage, which took effect on February 1, represents a 13.3% increase from RM1,500.

Non-compliant employers face fines of up to RM10,000 per employee, with repeat offenders risking RM20,000 fines or jail terms of up to five years.

Despite the penalties, Chin stressed that wage policies must evolve to reflect Sabah’s cost of living and economic challenges, ensuring fair pay across regions. – February 4, 2025