SABAH PKR chief Datuk Mustapha Sakmud has proposed the state labour advisory council address concerns about potential price hikes stemming from the new minimum wage set to be implemented next year.
Mustapha, also the Deputy Higher Education Minister, believes the council can play a key role in helping mitigate the impact of increased operational costs when the minimum wage rises from RM1,500 to RM1,700 per month from February 2025.
Mustapha who previously held the position of deputy human resources minister said he acknowledged wage increase is necessary to help workers cope with the rising cost of living.
But he also expressed concerns that companies, particularly small and medium-sized enterprises may pass the additional costs on to consumers.
“We know that in Sabah, our business volume is very small. We cannot compare it to Selangor or Penang; it’s not the same … our volume is not enough to cover the costs,” he told a press conference in Kota Kinabalu.
“We need to strike a balance between the needs of workers and the burden on businesses,” he added.
Sabah already faces price disparities, with many goods sold at prices 30% higher than in the peninsula.
Mustapha suggested that the council reach a consensus and forward its resolution to the Federal Human Resources Ministry for consideration.
Under the 2025 National Budget, the minimum wage will increase to RM1,700. However, concerns are growing over potential price hikes despite several initiatives being introduced to support local businesses.
Prime Minister Datuk Seri Anwar Ibrahim announced a six-month deferral for employers with fewer than five employees, allowing them until August 2025 to implement the new wage, while larger businesses must comply by February.
The Federal government has also allocated RM200 million under the progressive wage policy to assist SMEs with gradual wage adjustments.
Tax incentives and financial aid through SME support programs have also been proposed to ease the transition.
Steps have been taken to establish the Sabah Advisory Council in 2023, designed to promote discussions between government, employers, and employees in dealing with labour-related issues. - October 20, 2024
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