KOTA KINABALU: Sabah businesses feel that the raising of the minimum wage from RM1,500 to RM1,700 from Feb 1 next year under Budget 2025 was a hasty move.
Sabah United Chinese Chambers of Commerce (SUCCC) president Datuk Michael Lui said it will impact the business community together with the Progressive Wage Policy that will be enforced next year.
"The minimum wage increase is too hasty," he said in a statement on Sunday (Oct 20).
When tabling Budget 2025 on Friday (Oct 18), Prime Minister Datuk Seri Anwar Ibrahim announced that the minimum wage would be increased to RM1,700 from RM1,500 per month effective Feb 1.
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Employers with fewer than five employees would have until Aug 1 to implement the new minimum wage.
Lui said that overall, Budget 2025 was in line with the Madani Economic Framework that aims to promote sustainable economic reforms, improve governance, and raise the quality of life of all Malaysians.
He welcomed the RM600mil each special grant for Sabah and Sarawak, RM9.7bil for 17 packages of the Pan Borneo Highway Sabah Phase 1B, and RM7.4bil for the Sabah-Sarawak Link Road.
“We always believe that the most critical (issue) is for the government to fulfil the disrupted right to development as stipulated in the Malaysia Agreement 1963 (MA63),” he said.
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Lui said the government’s focus on developing SMEs in key areas such as food security, energy transformation and digitalisation was the proper step.
"The government is also providing RM50mil in matching grants for local entrepreneurs to digitalise and RM3.2bil for micro loans to small traders," he added.
"SUCCC believes that the government should place more attention on the survival of SMEs as they provide more than 60% of the country’s employment opportunities and account for 40% of GDP.
"The government has taken steps to improve the business environment, provide more loans and policy incentives, and ensure that enterprises experience stable development in an uncertain global economic environment," he added.
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Lui also welcomed the increased allocation for Rahmah Cash Aid (STR) and Rahmah Basic Aid (Sara) initiatives from RM10bil to RM13bil.
“I believe many families still face inflationary pressures, and targeted measures such as subsidies and financial assistance (will) alleviate the economic burden on low- and middle-income families," he said.
He described Budget 2025 as a pragmatic and balanced one that would improve livelihoods while promoting the country's economic growth and maintaining its fiscal stability.
He urged Sabah's business community to be prepared to make the necessary adjustments and plans for the implementation of Budget 2025 provisions.
