Malaysia’s new RM1,700 minimum wage took effect on February 1, but for many workers in Sabah, the change remains on paper.
Mohd Dawis Jailani, a 30-year-old skilled craftsman from Pulau Gaya, was hopeful when the government announced the wage hike. He and his younger brother, Mohd Ali Jailani, work in Kota Kinabalu, with Dawis earning RM70 a day and Ali making RM55—both below the new legal minimum.
The new rate translates to RM65.38 per day for a six-day workweek, RM78.46 for a five-day week, and RM98.08 for a four-day schedule. The increase was meant to ease financial burdens, but so far, many like Dawis are still waiting to see their salaries adjusted.
“We hope our salaries will be adjusted this month,” he said.
For Mohd Ridwan Gumbaris, a 32-year-old general store worker from Kota Belud, the raise means a bit more breathing room—when the next salary comes in.
“Before this, I earned RM1,500 and could save RM200 to RM300 a month. Now, God willing, I’ll have a bit more to pay rent and other expenses,” he said.
But rising living costs in the city remain a challenge.
“Rent isn’t cheap. I was lucky to find a room under RM400, but it’s a small third-floor shophouse shared with others,” he added.
For Ika Trest, 23, who moved 240km from Paitan to work in Kota Kinabalu, the adjustment is already in effect. Her company raised salaries in January, ahead of the deadline.
“The RM1,700 wage is okay. My finances are a little more stable, and I can send some money back home,” she said.
Employers, especially small businesses, have pushed back against the immediate implementation, warning that the sudden increase adds financial strain. SME Sabah has urged the government to phase in the hike gradually, saying a slower rollout would give businesses time to adapt.
“A phased implementation would be more practical. Businesses need time to adjust,” said an SME Sabah representative.
In response, the government granted a six-month deferment for businesses with fewer than five employees, allowing them until August 1, 2025, to comply. But for larger businesses, the deadline has already passed.
Despite continued calls for a broader deferment, the Sabah government has yet to issue a response, leaving businesses uncertain about potential relief measures at the state level.
For now, the reality is clear: businesses are bracing for higher costs, and workers are still waiting for the wage increase to reflect in their paychecks. – February 1, 2025.
