Kota Kinabalu: The recent increase in Malaysia’s minimum wage to RM1,700 has triggered concerns among Sabah’s business community, with employers warning of inflationary pressures and job cuts in the coming months.
Sabah Employers Association (SEA) President Yap Cheen Boon said the 13pc wage hike, effective this month, is just the beginning of more cost burdens for businesses in the state.
He said upcoming amendments to the Sabah Labour Ordinance introducing reduced working hours and enhanced benefits along with stricter compliance under the Housing Act, would add further pressure.
“Together, businesses will face a combined increase of more than 20pc in labour costs, not business costs as commonly misquoted,” he said, adding that the impact would be particularly severe for Sabah’s labour-intensive industries such as food and beverage and distributive trade, which rely on low-skilled workers earning basic wages.