18th May, 2012
KOTA KINABALU: The implementation of the minimum wage for workers is not linked with the coming general election. Human Resource Minister Datuk Seri Dr. S. Subramaniam said this in response to question from reporters after launching a dialogue on minimum wage with employers and employees from the various sectors at a leading hotel here yesterday. “It has nothing to do with the coming general election, whereby, minimum wage was being implemented for the welfare of workers and provide sufficient social protection to employees in Sabah in particular and the nation’s interest in general,” said the minister. He said based on studies there has been an increase in productivity in all sectors since 2004 and the government took initiative to implement the minimum wage for the benefit of workers and employers in the country. To a question, Subramaniam said the minimum wage’s objective is to help low income earners and the wage structure is expected to be implemented in January next year.
He said a small and medium enterprise (SME) with five workers or less is given 12 months timeframe to implement the wage structure. “However, professional firms such as legal, architectural, and consultancy firms, medical and dental clinics are not exempted in the 12-month period, these professional firms are required to implement minimum wage within six-month after implementation” said Suibramaniam.
The minimum wage covers local and foreign employees from all categories except for domestic helpers, gardener and others in similar sectors. He said the minimum wage was aimed to encourage industry to move up by investing in higher technology and to increase labour productivity as well as reducing the country’s dependence on unskilled foreign workers. The government has set RM800 minimum wage a month for Sabah and Sarawak and RM900 for workers in Peninsula. Subramaniam said the difference in minimum wage for Sabah, Sarawak and Peninsula was determined by NWCC after careful study of skill levels in the services and hospitality sectors in all three regions. He said in Sabah, the majority of workers are in agricultural and unskilled sectors. “The implementation of minimum wage is also aimed to achieve the nation’s vision as one of high income nation in Asia in 20202,” he added. Subramanian said employers failing to heed minimum wage implementation by the government would be penalized with fine and jail term under the Minimum Wage Act. Among those present were Minister of Resource & Information Technology Development, Datuk Yee Moh Chai and his assistant Dtk Jainab Ahmad, president of Federation of Sabah Manufacturers (FSM), Datuk Seri Panglima Wong Khen Thau, Malaysian Institute of Economic Research, Prof. Dr. Zakariah Abdul Rashid, and Sabah Labour department director Datuk Siti Aishah Mohd Asri.
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