Latest news with #MinimumWagesOrder2024
Borneo Post
09-05-2025
- Business
- Borneo Post
FMM Sabah raises alarm over amended Labour Ordinance, cites strain on SMEs
Liaw says these changes will reduce available man-hours, lower productivity and output, and increase operational and production costs. KOTA KINABALU (May 9): The Federation of Malaysian Manufacturers (FMM) Sabah branch has voiced strong concerns over the amended Sabah Labour Ordinance 2025 that took effect on May 1, just three months after the implementation of the Minimum Wages Order 2024. The branch, which largely comprises Small and Medium Enterprises (SMEs), said manufacturers are struggling to absorb the rising production costs without affecting profitability. FMM Sabah chairman Liaw Hen Kong said employers acknowledge the government's need to align with the International Labour Organisation (ILO) Declaration on Fundamental Principles and Rights at Work 1998 to improve Malaysia's image and attract both local and foreign investors. However, he stressed that any changes should be balanced and consider the realities of the regional economy that benefits both employers and employees while promoting better work-life balance and humane working conditions. 'The reduction in the standard workweek poses serious challenges for manufacturers operating around the clock, especially SMEs that still rely heavily on manual and semi-automated processes,' he said in a statement. He pointed to several measures introduced under the amended ordinance, including the reduction of the standard workweek, extension of maternity leave from 60 to 98 days, and the expansion of coverage to include all workers regardless of salary or job and seven days of paid paternity leave 'These changes will reduce available man-hours, lower productivity and output, and increase operational and production costs,' he said. He added that these pressures are worsened by the national Minimum Wages Order 2024, which raised the minimum monthly wage to RM1,700 from Feb 1. As a result, many businesses have frozen hiring to contain costs and are passing the burden on to consumers who are already struggling with a higher cost of living, he said. He also cited external pressures such as rising geopolitical tensions, including US reciprocal tariffs on selected Malaysian exports, which are affecting the competitiveness of local products. 'Combined with global trade tensions, supply chain disruptions, and price volatility, these factors are placing immense pressure on manufacturers particularly SMEs who are already grappling with rising domestic costs and limited financial buffers,' he said. FMM expressed disappointment over the government's decision to proceed with the changes despite collective objections and proposals submitted to the Ministry of Human Resources (MOHR) by trade associations as early as April 22, 2019. 'These proposals highlighted Sabah's unique circumstances and called for more dialogues between stakeholders and MOHR, but unfortunately, they were met with apathy,' he said. Nonetheless, FMM Sabah supports the establishment of the Sabah Labour Advisory Council (SLAC) under the Ministry of Science, Technology and Innovation (KSTI) as a useful platform for trade associations and the Government to engage on labour-related matters. Liew urged the council to convene follow-up meetings without delay so stakeholders can collectively address issues arising from these amendments and ensure Sabah's labour laws are aligned with its unique economic landscape.
Focus Malaysia
24-04-2025
- Business
- Focus Malaysia
Our rates are competitive: 99 Speedmart denies ex-staff claim over poor pay, long working hours
Letter to editor I AM responding to claims reported by FocusM regarding allegations made by an alleged former employee about overwork and underpayment. The report included comments suggesting that the company paid its employees poorly despite their long working hours contributing to its success. I wish to clarify that all our employees are paid in accordance with the law and are entitled to additional benefits. Under the Employment Act 1955 and the Minimum Wages Order 2024, the national minimum wage is set at RM1,700 per month. On that basis, 99 Speedmart not only complies with this legal requirement but in fact, pays more than that. Across West Malaysia, our current basic salary range for branch manager starts from RM2,800 to RM3,000 not including any additional allowances or incentives which may vary based on geographical location. Branch managers who demonstrate outstanding performance are entrusted to manage two outlets are also eligible for additional perks. However, they are typically assigned to oversee one outlet per day. While cashiers receive a gross income inclusive of overtime pay, that exceeds RM1,800 which is well above the national minimum wage. In addition to basic wages, 99 Speedmart offers a comprehensive benefits package for staff. This includes annual salary increments, year-end bonuses, access to panel clinics with claimable medical visits, opportunities for career advancement and training, a free SIM card with 40GB of data and unlimited calls as well as food vouchers. Regarding working hours, employees work in shifts. Overtime compensation is provided for any additional hours worked beyond the regular schedule upon agreed by both parties. All employees are granted all entitled leave based on their years of service. This includes annual leave, maternity and paternity leave as stipulated by law. Employees also receive standard EPF (Employees Provident Fund) SOCSO (Social Security Organisation) and EIS (Employment Insurance System) contributions. New mothers are entitled to 98 days of maternity leave while fathers receive one to seven days of paternity leave based on their years of service. 99 Speedmart currently operates more than 2,800 outlets nationwide with a total workforce of 23,000 staff. All in all, I wish to reiterate that the company strictly adheres to all labour laws and remains committed to the welfare of its employees. – April 24, 2025 Yong Eng Kwang is the chief operating officer of 99 Speed Mart Sdn Bhd. The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
