SANDAKAN: Tanjong Papat Assemblyman Alex Thien Ching Qiang said raising incomes and gradually improving the minimum wage should be a national priority, but policy must not focus only on the wage figure.
He said the government must consider state economic development, business conditions, industry traits, productivity and companies’ ability to absorb higher labour costs, especially given Sabah’s structural differences from Peninsular Malaysia.
Thien said major Peninsular Malaysia cities are not entirely comparable to Sabah in economic scale, purchasing power, business ecosystem and market conditions. Many Sabah MSMEs already face rising operating and labour costs and limited market size, so any nationwide minimum wage increase must be carefully assessed for its impact on Sabah.
He agreed workers’ wages should rise with economic development, but said any increase must be gradual, data-driven and tied to productivity growth. It should not simply raise the figure and pass all extra costs to businesses.
He noted Sabah’s oil palm and plantation sector depends on international palm oil prices, which operators cannot control. If wages and statutory costs rise while selling prices cannot, margins will shrink; smaller plantations with older trees, lower yields or high replanting costs could face losses. If businesses cannot survive, even the highest minimum wage cannot create sustainable jobs—protecting workers and keeping businesses viable are two sides of the same issue.
If the Federal Government further raises the minimum wage, Thien said it should account for Sabah’s different economic structure and give the state more flexibility on business transformation support and implementation timelines, so Sabah workers are not overlooked due to regional differences.
He proposed a comprehensive impact study by Bank Negara Malaysia, the Department of Statistics Malaysia, the Ministry of Human Resources and credible independent institutions, covering Sabah, Sarawak and Peninsular Malaysia. It should examine regions, industries, business sizes and worker categories, and assess income gains, business costs, employment, prices, productivity, automation, closure risks, new jobs and competitiveness. The full findings should be made public, and good policy must honestly address side effects.
Thien said higher wages cannot rely only on administrative directives; they must come with business upgrading and economic structural transformation. The government should help MSMEs with automation, digitalisation, technology, training and productivity, plus tax incentives, financing and transformation aid.
He supports raising Sabahans’ incomes, but any new policy must fit Sabah’s real conditions—the goal is not just a bigger pay slip, but greater purchasing power, viable businesses and more, better jobs. – James Leong
Thien said the government must consider state economic development, business conditions and industry traits.
