Latest news with #LabourLegislationTransformationProgramme2025
The Star
19-05-2025
- Business
- The Star
Sabah govt, industry players still working out 'best way forward' for worker housing law
KOTA KINABALU: The Sabah government will complete its consultations with stakeholders before implementing the federal law on minimum standards for worker housing, says a senior state civil servant. The Federal Government has completed the legislative process on the matter but the state is still working out the best way forward, state Science, Technology and Innovation Ministry permanent secretary Datuk Mohd Hanafiah Mohd Kassim said. ALSO READ: New amendments to Sabah and Sarawak labour ordinances take effect from May 1 'The law has not been enforced in Sabah yet. We are still at the consultation stage, and more discussions with industry players are needed to assess readiness. 'Many employers are concerned about the cost implications. "They need time to plan their budgets, and we believe this can be resolved through continuous engagement," he said on Monday (May 19) when asked if the law has come into force in the state. He added that the ministry is working closely with the Sabah Labour Department on the matter. Hanafiah said industry players informally raised the matter during several recent meetings, and the state government advised them to submit their views in writing. "Businesses in Peninsular Malaysia were given a grace period before implementation. "Sabah needs the same kind of consideration," he said, adding that workshops and briefings would be held to ensure employers are adequately prepared. Several stakeholders have urged the state government to hold off from including worker housing requirements into amendments to the Sabah Labour Ordinance (SLO). ALSO READ: Hajiji: Good labour laws key to Sabah's economic growth Hanafiah acknowledged industry concerns and said the state remains committed to finding a balanced solution. 'We understand the business community's position. We aim to ensure any new regulations are implemented practically and fairly, without neglecting worker welfare,' he said at the launch of the Labour Legislation Transformation Programme 2025, here. Also present was Trade Union Affairs Department director-general Mohd Asri Abdul Wahab. Sabah Employers Association (SEA) president Yap Cheen Boon had said earlier that introducing the new requirements without proper consultation would add more strain to struggling businesses. 'We are urging the Sabah government to pause the amendments and reclaim decision-making authority over the SLO. "Any changes must reflect Sabah's unique business landscape,' Yap told a joint press conference last year. ALSO READ: Minimum wage: Caught between surviving and truly living The conference was called by the Federation of Malaysian Manufacturers (Sabah), Federation of Sabah Industries, Sabah Entrepreneurs Transformation, Kota Kinabalu Hardware, Machinery and Building Materials Traders Association, and Sabah Timber Industry Association, among others. Yap also highlighted Sabah's fragile post-pandemic economic recovery, pointing out that while the state recorded 3.7% growth in 2022, its gross domestic product was still lower than in 2019. He added that employers are already facing multiple new obligations, including safety regulations and wage-related reforms, and the added pressure from new housing requirements could worsen the situation. When confirming that the Sabah Labour Ordinance (Amendment) Act 2025 and the Sarawak Labour Ordinance (Amendment) Act 2025 would come into force on May 1, Human Resources Minister Steven Sim said the exception was Section IVA, which specifically addresses the minimum standards for workers' housing, accommodation and facilities.
The Star
19-05-2025
- Business
- The Star
Reforming Sabah's labour laws crucial to protect workers' rights
KOTA KINABALU: Sabah's efforts to reform its outdated labour laws mark a crucial step towards ensuring that development does not come at the cost of workers' rights, says a government official. 'Sabah still lags behind in several areas, according to the Department of Statistics. But catching up should not mean cutting corners, especially when it comes to protecting workers,' said Science, Technology and Innovation Ministry permanent secretary Datuk Mohd Hanafiah Mohd Kassim. He said the recent amendments to labour laws, covering both the private and public sectors, reflect the government's commitment to fair and inclusive progress. 'These changes did not happen overnight. Even before they were tabled in Parliament, we engaged stakeholders to identify gaps and challenges. The fact that the law had not been updated for so long speaks volumes about the lack of regulation in this sector,' Hanafiah told reporters on Monday (May 19). Speaking at the launch of the Labour Legislation Transformation Programme 2025, here, he said the amendments are intended not only to meet international standards, but also to address exploitation, underpayment, and poor working conditions. 'The key point is that these amendments reflect our commitment to meeting international labour standards and protecting workers' rights. The scope is extensive, involving multiple departments and agencies, including the National Wages Consultative Council (MPGN) and Cuepacs (Congress of Unions of Employees in the Public and Civil Services). So, this does not just apply to the private sector, it also involves civil servants. 'Ideally, industries should uphold these rights on their own. But since that has not always been the case, the government is stepping in with proactive measures,' he added. Hanafiah stressed that the approach was collaborative rather than punitive. 'We have launched a mobile team that is currently travelling across Sabah to conduct workshops and outreach. Today's session is just the beginning, we want to ensure all stakeholders understand the law and their rights,' he said. As Sabah works to strengthen its economy and catch up with more developed regions, he stressed that inclusive and ethical progress must remain a priority. 'There are no shortcuts to development. Labour reforms must go hand in hand with economic initiatives. We cannot afford to delay this any longer,' he said. Addressing concerns about the impact of digitalisation on employment, Hanafiah noted that industries are evolving rather than eliminating jobs. Describing the transition as a global trend, he noted that it is projected that by 2030, around 69mil current jobs will evolve into 189 million new jobs globally, driven by science, technology and innovation. He explained that roles are shifting rather than disappearing. 'Factory mechanics, for example, may now oversee digital dashboards instead of machinery. It is more of a transition than a termination,' he said. Hanafiah also acknowledged concerns over salaries amid job transitions, but urged a broader perspective. 'In the past, TVET (Technical and Vocational Education and Training) graduates were often overlooked. Before, welders might have earned RM60 to RM70 a day, but now, many are earning salaries comparable to, and maybe exceeding, those Jusa-level officers in high-skill sectors,' he explained. He said as responsibilities and risks increase, especially in industries such as aviation, wages and insurance coverage are also expected to rise. 'What matters is that digitalisation must go hand in hand with security and workers' rights. As we digitise, we must ensure these protections evolve too. Monitoring this transition is crucial to ensure no one is left behind. If there are gaps, they must be flagged so the government can respond,' he said. While it is still early to gauge the full impact, Hanafiah said his discussions with industry players have revealed no plans for mass layoffs. 'We want to move forward, but not at the expense of workers. Growth must come with justice,' he said. Also present was Trade Unions Affairs Department director-general Mohd Asri Abdul Wahab.
