Labour Council needed, says Sabah Economic Advisory Council
Published on: Friday, May 10, 2024
By: Nikko Fabian
Foo (left) said the TSLAC had been under discussion since early 2023, with the recent endorsement from CM Hajiji (right) signalling a crucial step towards addressing labour-related challenges.
Kota Kinabalu: Sabah Economic Advisory Council (SEAC) member Professor Datuk Foo Ngee Kee emphasised the pressing need for the establishment of the Tripartite Sabah Labour Advisory Council (TSLAC).
He said the realisation of the council would help address the myriad issues confronting SMEs in Sabah, country and region in general.
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Foo, who is also with the National Employment Council, said the TSLAC had been under discussion since early 2023, with the recent endorsement from Chief Minister Datuk Seri Hajiji Noor signalling a crucial step towards addressing labour-related challenges.
Foo underscored the critical nature of resolving labour issues affecting employees, employers and government ministries, warning that the failure to do so could have severe repercussions on productivity, business closures and overall economic performance in the state.
He echoed the Chief Minister’s sentiments on the importance of ensuring that government policies and decisions consider the unique circumstances in Sabah, particularly the disparities in productivity, scale and business costs between East and West Malaysia.
The challenges faced by SMEs in Sabah are multifaceted, ranging from the impact of a weaker ringgit to escalating operational costs and regulatory compliance burdens.
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Foo highlighted the rising costs of doing business, including logistic expenses, compliance requirements, increasing wages and benefits for employees.
“These factors, if left unaddressed, pose a significant threat to the sustainability and growth of SMEs in the region,” he added.
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Moreover, Foo said the lack of access to finance, expertise and adequate infrastructure further compounds the challenges faced by SMEs in Sabah.
Additionally, he emphasised the importance of government support in facilitating the transformation of SMEs into high-growth and high-value enterprises, stressing the need for proactive measures to alleviate the barriers hindering their development.
In light of these pressing issues, the establishment of the Sabah Labour Advisory Council is seen as a crucial step towards fostering dialogue among stakeholders and formulating policies that address the specific needs of SMEs in the region.
By providing a platform for in-depth discussions and incorporating tripartite perspectives, the TSLAC aims to drive meaningful change and support the sustainable growth of SMEs in Sabah.
As Sabah navigates the complex landscape of economic challenges, the collaborative efforts of government, industry and labour stakeholders will be instrumental in overcoming obstacles and fostering a conducive environment for SME development and prosperity in the state.
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