KUCHING: The Sarawak Bank Employees’ Union (SBEU) has called for the implementation of a regional minimum wage system, similar to models adopted in many countries, where areas with higher living costs and stronger economic development offer higher wages.
SBEU chief executive officer Andrew Lo proposed that major urban centres such as Kuala Lumpur, Johor Bahru, Miri, Kota Kinabalu, and Penang adopt a minimum wage of at least RM2,500 per month.
He also suggested that Sabah and Sarawak’s minimum wage be set 25 per cent higher than the national baseline, in line with the regional allowance currently provided to civil servants in both states.
“We support a regional minimum wage system, provided that the national minimum wage remains at RM1,700 as a base level, which was established after evaluating national economic data,” Lo said.
He said Malaysia’s poverty line index stands at RM2,256, making it essential for regions with a higher cost of living to implement a higher minimum wage.
Lo’s statement comes in response to recent calls from The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) and the Federation of Malaysian Manufacturers (FMM) to introduce a differentiated minimum wage system based on state-level economic and social conditions.
FMM has argued that the current “one-size-fits-all” national minimum wage is ineffective, as it does not account for the economic disparities between highly developed and less developed states. The federation also warned that uniformly increasing the minimum wage could have an uneven impact on businesses across different regions and industries.
Similarly, ACCCIM, which has represented the Chinese business community since 1921, raised concerns that a blanket minimum wage policy could strain micro, small, and medium-sized enterprises (MSMEs) in less developed states, making it harder for them to sustain operations amid rising costs.
While acknowledging the need for a higher minimum wage due to inflation and cost-of-living pressures, ACCCIM president Datuk Ng Yih Pyng stressed that a regional wage structure would be a more effective and balanced approach.
“A regionally structured minimum wage would reflect local cost of living, economic growth, and labour market conditions, ensuring fairness and sustainability for both workers and businesses,” he said.
