KOTA KINABALU: It is unlikely for the State Government to postpone the periodical increase of the newly introduced minimum wage in Sabah despite objections from bosses in the local industries.
If the Chief Minister Datuk Musa Aman’s remarks were anything to go by, salaried men in the State will enjoy higher pay when the review takes place as scheduled next year.
“It has always been the intention of the government to review it (minimum wage) periodically to ensure it is up to date,” he said in his speech at the Malaysian International Chamber of Commerce luncheon here on Tuesday.
Musa, who was represented by Deputy Chief Minister cum Industrial Development Minister Datuk Raymond Tan Shu Kiah, assured that the government will consider all aspects involved in order to be fair to both the workers and employers.
“Such reviews normally take into consideration the median income, productivity growth and inflation, amongst other things, and it is unlikely that a review will result in a drastic increase without any good reasons.
“I hope that the business sector can appreciate the necessity of a minimum wage. I believe everyone here agrees with me that any person holding a decent job should be paid a decent wage,” he said.
Musa, who is also the Finance Minister, quipped that poor work quality and productivity should not qualify as a reason for withholding the review, saying that the answer to this problem lies more in the skills and productivity enhancement than in wage suppression.
He noted there were a number of incentives available to firms undertaking human resource training and development, productivity improvement and research and development in Malaysia, usually in the form of tax incentives.
He said these incentives were designed specifically to address the problem of poor work quality and productivity and urged all businesses in Sabah to make good use of them.
MICC Sabah chairman, Brig. Gen (R) Datuk A Arulpragasam, in his welcoming remarks said that MCCI felt that a near future minimum salary revision was not justifiable by the current work output and work ethics in Sabah.
He said, while a postponement may not be received well by politicians and workers unions, many companies were already moving into mechanisation to keep cost down to manageable levels and this could result in lots of unemployment.
Touching on the power supply issues in the East Coast, Musa said, the government is considering several options and believed that natural gas could potentially play a larger role in generating power in the area.
“This is one option that we have on the table. We will be exploring this option in earnest, and will make our decision known after all issues associated with it are satisfactorily addressed,” he said.
Meanwhile, Arulpragasam informed that 30 countries will be coming as exhibitors at the Sabah International Expo 2014, which MICC and the Federation of Sabah Industries (FSI) will be co-organizing from September 18 to 22.
So far, the Chief Minister of Northern Territory and 19 high commissioners and ambassadors have confirmed their attendance, he said.
He also announced that MICC Sabah will be the first to organize a free briefing on the implications of the 2015 Budget on October 17, a week after its October 10 scheduled tabling in Parliament.