olivia@nst.com.my
KOTA KINABALU:Sabah is committed to ensuring that the welfare of every worker in the state is protected.
Chief Minister Datuk Seri Hajiji Noor said he welcomed the Federal Government's move to raise the monthly minimum wage from RM1,500 to RM1,700 through the Minimum Wage Order 2024.
"We must ensure that every worker in Sabah receives a salary that is commensurate with their contributions," he said during the handover of appointment letters to 48 members of the Sabah Labour Advisory Council (SLAC) at a resort here.
The council members represent government sectors, employers, and employees.
Hajiji said the establishment of SLAC would help ensure that the rights and welfare of workers in Sabah are better protected, while also assisting employers in conducting their businesses in a more orderly and systematic manner.
He added that resolving issues related to workers would positively impact Sabah, especially in the economic sector, as a stable workforce and an efficient labour law system are crucial to attracting investors to the state.
Meanwhile, Sabah Labour Department director Wan Zukifli Wan Setapa said raising the minimum wage would not only improve workers’ purchasing power but also trigger a ripple effect across multiple economic sectors through increased consumer spending.
"In economic terms, this is called the velocity of money. If the minimum wage is increased to RM1,700, each worker would receive an extra RM200," he said.
"Of the 2.1 million workers in Sabah, about 75 per cent are currently earning RM1,500. If you do the math, that’s an additional RM200 million in monthly spending from roughly one million workers."
"Imagine RM200 million spent on buying rice. That’s RM200 million in revenue for the rice sellers. Then the rice seller buys vegetables — another RM200 million. The vegetable seller might buy fish, and so on."
"If the money circulates ten times, that RM200 million becomes RM2 billion a month. Over a year, that’s RM20 billion moving through our local economy," he said at a press conference after the handover ceremony.
Last year, NST reported about a man from Sabah took tough decision to work odd job in South Korea due to low salary back in hometown.
Sabah Employers Association also raised concerns of the minimum wage increment could further weaken business and caused further job losses.
https://www.nst.com.my/news/nation/2024/09/1102834/sabah-workers-south-korean-experience-highlights-local-economic
As for concerns over potential job losses, Wan Zukifli said the government has plans in place including creating more job opportunities and bringing back Sabahan talents currently working in Peninsular Malaysia to help power the local economy and strengthen the workforce.
Ends.
Tags: Sabah, minimum wage, salary, welfare, worker, justice, fairness, New Straits Times
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