KUCHING: A further increase in the minimum wage for East Malaysia could significantly impact the economy, says Datuk Richard Wee.
Acknowledging the proposal by Sarawak Bank Employees Union (SBEU) chief executive officer Andrew Lo’s call for the minimum wage in Sabah and Sarawak to be raised to RM2,125, the Sarawak Federation of Chinese Associations (SFCA) president cautioned that such a move could create challenges for businesses already adapting to the recent wage adjustment that took effect on Feb 1.
Wee stressed that although SBEU is basically proposing for the bank employees only, the impact would not be limited to bank employees but would inevitably extend to other industries as well.
“Although SBEU is basically proposing for the bank employees only, it will have a knock on effect on the other sectors too.
“I do agree that there should be a formula for minimum wage for different regions, towns, and cities, taking into consideration the varying cost of living in these areas, as it is not a one-size-fits-all situation,” he said.
For the record, Lo proposed that East Malaysia’s minimum wage be set 25 per cent higher than the current minimum wage of RM1,700.
According to him, while Sarawak contributed significantly to the economy through its natural resources, workers there still faced a disparity in wages compared to those in Peninsular Malaysia.
Furthermore, he said that a higher minimum wage in East Malaysia was necessary to reflect the higher cost of living in Sabah and Sarawak, due to logistical challenges and the vast geographical area.
