CM: Adjusting to minimum wage may take longer

Chief Minister Datuk Seri Musa Aman said there is a need to further discuss the request by employers for ample time to adjust to the minimum wage policy. 

 Adjusting to minimum wage may take longer

"We will need the input from all parties on how best to address this matter. I am sure we can work out a solution that works for everyone," he said, responding to the request by the Malaysian International Chamber of Commerce and Industry (MICCI) Sabah branch at its annual luncheon at Pacific Sutera, Tuesday. 

Nonetheless, Musa, who is also Finance Minister, said the implementation of the minimum wage policy should be seen from the perspective of it being the key that could motivate employees to improve their productivity and strengthen businesses. 

"I take note on worries raised by our business community with regard to minimum wage. 

Some quarters argue that due to the high cost of living in Sabah, employees here should get a higher minimum wage compared to workers in the peninsula. 

"I believe the minimum wage policy should by right not only protect employees but also employers. Rest assured the Government values the contribution of the business community to the economy and will not purposely create a situation that will cause disadvantage to businesses," he said. 

MICCI Sabah branch Chairman, Datuk A Arulpragasam, had earlier said they were hoping that the State and Federal Governments could allow ample time for the private sector to make necessary adjustments in order for a smooth implementation of the policy. Responding to the cabotage policy issue also raised by Arulpragasam, Musa agreed that there were some sections that need to be improved to help the business community in Sabah. 

 

"In regards to a single and uniformed costing system for the whole country, this can be considered. However, it cannot be done overnight. There are a number of things that need to be looked into before this can take effect, especially one closely related to distance," he said. 

Arulpragasam had said that the MICCI Sabah hoped the Federal Government would implement the one-country-one-price policy in keeping with the 1Malaysia concept so that Sabah would not be made to suffer financially, especially when the Goods Sales Tax (GST) is introduced in the near future. Arulpragasam hoped solutions could be found after the private sector's views on the cabotage policy had been heard by the Prime Minister during his recent visit here and the Deputy Prime Minister at the dinner hosted by Musa in late April this year. 

On the MICCI Sabah's call for local players to be given chances in the oil and gas industry as well as to ensure enough gas for Sabah's own development, Musa said the State Government was continuously holding discussions with Petronas to ensure equal opportunities for local contractors. He said Petronas had responded well and positive developments had been seen in relation to the involvement of local contractors. However, Musa assured that the State Government would continue to discuss with Petronas to consider the participation of more local players. 

"On ensuring sufficient gas supply for our own development, the State Government will ensure this is done and we are confident that Petronas will support us in this matter," he said. 

Towards this end, the Chief Minister said the State Government's doors are always open to the business community should there be more issues or matters they wanted to raise. 

"Being open to discussions has always been a practice of the Barisan Nasional (BN) government. It is a government that is ever willing to listen to the grouses, feedback and ideas from the business community and industry players." 

The BN government is pro business and encourages businesses and investments to flourish, he said, adding that to him, if businesses do well, the State will prosper and everyone will be happy. 

"However, for this to happen, there must be political and economic stability in the country. Our Prime Minister has been working hard to ensure that such stability and unity in the country prevails," he said. "I, therefore hope for your continued cooperation because only if we work together, we can take Sabah and its economy to greater heights," he said. 

Earlier, he said a number of positive developments in Sabah's economy had been seen in recent years, which he attributed to the hard work of the public and private sectors.

"In the first quarter of 2012, we managed to attract private investment amounting RM10 billion, and reasons for this success include a stable, business friendly and prudent government. "Our success is not born out of sheer luck but is attributed to the hard work of all quarters in making this possible. We must remain united and avoid friction that could destabilise the economy and with that, the confidence of investors. "We must always use the right channels to streamline differences in opinion, and when things become difficult, we need to go back to the concept of give and take. "If we are able to safeguard this culture, our economy will continue to develop and prosper. As such, I encourage those with issues and problems to hold discussions, rather than making your own rash decisions that may hurt the State's economy," he said. 

He also advised local companies and entrepreneurs to tap into a number of incentives and enter into joint ventures should they lack expertise in certain areas. He said the confidence shown by two American companies in the State's agriculture and aquaculture sectors is an indicator that Sabah is taking the right steps in diversifying its income and employment streams. 

He said Dole Food, a major marketer of fresh fruits and vegetables had expressed its interest to invest more than RM1 billion, while Darden had announced an over RM2 billion investment to produce red lobsters.

Another important milestone was Malaysia's first livestock centre on a large scale, the Keningau Integrated Livestock Centre (KILC) where Brunei Darussalam has a 40 per cent equity in the project, and the Sultanate's willingness to invest added another feather to Sabah's economic growth cap. 

"It is my hope that local companies will be encouraged by these developments, and will propose innovative business ventures," he said. 

Musa said the Federal Government under the leadership of the Prime Minister Datuk Seri Najib Tun Razak had put in high gear initiatives like the Government Transformation Programme (GTP) and the Economic Transformation Programme (ETP) aimed at preparing the country to achieve its mission of becoming a high-income nation by 2020. 

In this respect, he said Sabah had aligned its development programmes with the GTP and ETP to boost the overall economic health of the State through the key sectors of agriculture, tourism, manufacturing, oil and gas and palm oil. All of these areas are also getting special emphasis under the Sabah Development Corridor (SDC) and are contributing to economic prosperity, so he hoped MICCI members involved in these sectors would ensure that these areas continue to perform. 

He also said that they need to think out-of-the-box in developing new initiatives especially in downstream processing and value-adding of resources. The Chief Minister was glad to note the commitment of MICCI Sabah in pursuing goals that positively impact the local business community. 

"I wish to see MICCI play an important role in Sabah's economic development, and I encourage you to work hand in hand with the government for us to collectively bring the State to new heights," he said. 

Source: Borneo Post