After the minimum wage order came into effect across Malaysia in February, there were mixed reactions, especially in East Malaysia, where the order was seen as biased towards them.
Recently, the Sarawak Bank Employees Union (SBEU) has spoken out to push for the minimum wage in East Malaysia to be increased to RM2,125, a 25% increase from the current rate of RM1,700.
SBEU CEO Andrew Lo stressed that the cost of living in Sabah and Sarawak is much higher than in the Peninsular, especially with the logistical challenges and geographical expanse.
He also supported an area-based wage model, proposing a rate of at least RM2,500 in developed cities such as Kuala Lumpur, Johor, Miri, Kota Kinabalu, and Penang.
However, the government is sticking to the uniform minimum wage policy after examining various models, including geographical ones.
Human Resources Minister Steven Sim said the decision to set the RM1,700 nationwide had been technically considered for the past year.
The question is, is increasing the minimum wage really the best solution in the current situation of soaring cost of living?
If so, how will employers in Sabah and Sarawak who have previously been reluctant to accept the minimum wage order react?
