Sabah Needs Its Own Labour Ministry Say Lawyer Bosses Group

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The federal government has not effectively addressed Sabah’s acute shortage of skilled and semi-skilled workers in the plantation and construction sectors, says a labour law expert. (EPA Images pic)
PETALING JAYA: A labour law expert and employers’ group have called for the urgent establishment of a state human resources ministry for Sabah, in compliance with the Malaysia Agreement 1963 (MA63).
Lawyer Sukumaran Vanugopal said one of the preconditions Sabah must fulfil to bring labour affairs into its legislative list is the creation of a state ministry to handle human resources.
He lamented that the federal government was not effectively addressing the state’s acute shortage of skilled and semi-skilled workers in the plantation and construction sectors, The Daily Express reported.
“The federal government’s policies are often rigid and misaligned to meet the actual needs of the Sabah labour market,” he said.
Sukumaran said this led to seasonal labour shortages in plantations and delays in approvals for foreign labour quotas and permits. Which, in turn, caused plantations to suffer financial losses.
“This has also resulted in undetected labour law violations in remote areas, especially in the plantation, construction and service industries,” he said at a forum titled “Borneonisation & Labour Law” organised by Sabah Action Body Advocating Rights yesterday.
He also spoke out against Putrajaya’s uniform minimum wage policy, which he said ignored Sabah’s economic disparities.
“They burden small businesses and fail to attract labour to high-cost urban areas like Kota Kinabalu. The policies are also not tailored to meet Sabah’s industry needs which require skills training specific to ecotourism and hospitality,” he added.
Sabah Employer Association president Yap Cheen Boon said the state does not have a dedicated human resources ministry despite having two million workers, making it the state with the second-largest worker population in the country.
He added that micro, small and medium-sized enterprises (MSMEs) operating in low-productivity sectors contributed to lower gross domestic product per capita, and the third-lowest median salary in Malaysia – RM1,800, based on median monthly wages by state for the month of September 2023.
However, this is still higher than the minimum wage of RM1,700 effective this month, Yap said.
“Sabah still has the highest unemployment rate in Malaysia. In 2024, it was 8.71% with 181,500 Sabahans out of work. That means, for every three unemployed in Malaysia, one will be in Sabah.
“Most alarmingly, out of the 1.9 million working population in the state, only 480,000 Sabahans regularly contribute to EPF and the Social Security Organisation (Perkeso), with the others forced to eke out a living in the grey ‘informal economy’,” he said.
Set up a Sabah labour advisory council first
Yap also pointed out that Sabah employers are not represented in the National Labour Advisory Council and the National Wages Consultative Council.
He said in the short term, Sabah should take charge and establish its own labour advisory council.
“It should comprise the state government, Sabahan employers and employees with the power to deal with all labour and wage issues within Sabah’s context, including engaging with federal agencies.” - FMT

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