Kota Kinabalu: Warisan Vice-President Datuk Junz Wong welcomed the Federal Government’s decision to replace the proposed RM10,000 penalty under the Employment Insurance System (Amendment) Bill with a progressive enforcement framework, but urged Putrajaya to ensure the policy is implemented in a way that reflects Sabah’s unique labour market.
The Tanjung Aru Assemblyman said the revised approach, which prioritises compliance notices and education before enforcement, is an improvement over the original proposal.
“While the revised approach is certainly an improvement, the fundamental question remains. Will this new reporting requirement genuinely help employers fill vacancies more effectively, or will it simply create another layer of bureaucracy for businesses already struggling with rising operating costs, labour shortages and a challenging economic environment?” he said.
Wong said Sabah’s labour market differs significantly from that of Peninsular Malaysia, with employers in many rural and semi-urban areas facing shortages of skilled workers, geographical challenges and slower digital adoption.
“Policies that may work in Kuala Lumpur do not necessarily work in Kota Kinabalu, Tawau, Sandakan or the interior districts of Sabah. Putrajaya must stop assuming that a uniform policy automatically produces uniform outcomes,” he said.
He said the success of the Employment Insurance System should be measured by how effectively job vacancies are matched with qualified Malaysian workers, rather than by the number of employers penalised for administrative non-compliance.
“If employers faithfully report vacancies but suitable workers still cannot be found, then the problem lies not with the employers, but with the effectiveness of the employment matching system itself,” he said.
Wong urged the Federal Government and the Human Resources Ministry to ensure the amended law remains practical and business-friendly, including providing a reasonable grace period before enforcement, simplifying reporting procedures, exempting micro businesses and rural employers where appropriate, and regularly reporting job placement outcomes.
He said Warisan supports efforts to strengthen employment opportunities and improve labour market efficiency, provided they strike a fair balance between protecting workers and creating a business environment that encourages investment, expansion and job creation.
“Sabah employers should be treated as partners in nation-building, not as regulatory targets,” he said, adding that practical policies, rather than additional administrative burdens, would better support business growth and create more jobs for Sabahans.
