To Understand Sabahs Plight one has to understand the myriads of things that make up the mindset of Sabah holistically in the context of socio-eco-political set up. Sabah squeezed by exploitive monopolies By: John Lo THE PM has announced the minimum wage of RM900 for Peninsular Malaysia and RM800 for Sabah and Sarawak. There have been expressions of dissatisfaction on the smaller amount for Sabah while the employers, I understand, have submitted a proposal of RM600 plus. Expecting PMs first decision to be perfect is not fair nor there ever be one that will please all. There can be no instant prescription to the highly emotional and complex issues of wage minimum. No country has got it perfectly right at any one time. Notwithstanding, it must be borne in mind that the introduction of minimum wage is an important step in the right direction - especially for a great number or workers in Sabah, whose wages are lower than the rate that PM has announced. Not to introduce a minimum wage policy is no longer an option for Malaysia. Without it, there is a every likelihood that Malaysia may turn into another Philippines which has been exporting graduate-maids, graduate-bus drivers and graduate-construction workers to Sabah, HK and Singapore! These graduates can command better pay as maids, bus drivers, etc, in these host countries than as graduate employees in their home country. In response to the comments by one Federal Deputy Minister [Human Resource] that a minimum wage of RM900 for Sabah will result in many businesses having to close shop. However, the dictates of social and economic justice should tell us that Sabahans should get a higher minimum wage than West Malaysians, as the less fortunate Sabahans have to suffer higher prices for almost all essential goods. On the other hand, Sabahans are also being hammered by lower minimum wages. Logically, Sabahans should enjoy a higher minimum wage. The imposition of minimum wage, over a period of time, will force companies to wean themselves off cheap labour and for survival, will seek to use more efficient production technology and raise productivity. The wage level will increase in tandem. Those companies which insist on relying on a low wage regime to make profits - let them die or close shop. In any case, the Government cannot hope to survive long within a framework of extreme low wage regime like what we have now in this democratic and economic conscious era on a low wage regime. Remember Arab Spring? There are no countries in the world that have progressed economically and remain competitive globally by relying on paying its citizens extremely low wages. The Asian tigers have transitioned from low wage to higher wage regime. China, whose impressive economic growth is globally recognised, has already commenced to elevate the wage level for her citizen. Granted that there will always be some regional and sectorial differentials to be considered in the determination of minimum wage structure. What cannot be denied is that the differential of RM100 [12.5pc] is quite a lot of money for the less fortunate Sabahans. It is illogical, in the context of Sabah which has so much natural resources, for Sabahans to suffer higher prices for almost all daily essential items and yet having to face the indignity of a lesser minimum wage. Most public discourse has focused on a static/current framework and ignore that the best solutions for all concerned must be found over a certain period of time. This differential can be resolved in the following manners: (i) Immediately, set up a review mechanism with tripartite representation from Government, employers and labour, which, over time, can adjust and tweak the minimum wage structure regularly so that the minimum wage will have a economic, social and political equilibrium with the changing rate of economic growth, productivity, regional differentials and inflation. (ii) The current criteria used for the establishment of minimum wage are based on cost of living and ability of employer to pay. The Government must also take into economic and other social factors into consideration To achieve this, the relevant Federal Ministries should commence paying genuine focus in the development and/or supply of roads, airports, ports and electricity for Sabah. The Minister of Transport must wake up from his slumber to the plight of Sabah in the form of poor air connectivity and maritime services. He is not doing his job by constantly saying the foreign airlines and/ships are welcome to Sabah. He should proactively devote financial resources and his energy to promote foreign airlines and ships to come to Sabah. The Federal/State Governments must look into dismantling privileged monopolies like rice imports [Bernas], shipping [Cabotage Policy] and cement [Sabah Cement Industries]. These exploitive monopolies are adding tremendous financial burdens onto the shoulders of Sabahans whose real disposal incomes are already so much lower than in W Malaysia. They are reaping unjustifiable and unconscionable profits [without having to compete!] by improvising Sabahans. The employers cannot close their eyes to the fact that families cannot live on RM800. They should also ask themselves what sort of families living on RM800 Sabah will have and the kind of children they can bring up. Healthy families and properly brought up children are critical for Sabahs future. Instead of resisting the implementation policy by PM, they should face reality and look into reinventing themselves for their business survival and in the interest of our State. The Federal Government also needs to address the dire financial position of many Sabahans in the farming and fishing communities whose incomes are below the minimum wage level. The total number of these two groups can be larger than those who will benefit from the minimum wage policy. They deserve equal attention from the Federal Government. Last and most important for Sabahans to realise is that the introduction of minimum wage is a very good start but it is no panacea in the long term for the less fortunate Sabahans. The Federal Government needs to adopt a holistic approach which should include a more comprehensive set of social safety net, conscientious and proactive budget allocations to enhance human capacity, a more open economy so that the less fortunate individual Sabahans can have better access for essential goods at competitive prices and more attention in promoting investment into Sabah. The Federal Government must also provide financial incentives to S&M business for them to enhance human capacity and improve productivity. I can foresee that if the Federal Government fails to adopt this holistic approach with urgency, the introduction of minimum wage will be negated and rendered it meaningless within 3 years.
Posted on: Sun, 06 Jul 2014 06:45:12 +0000
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