Kota Kinabalu: Sixteen business and industry associations in Sabah want the State Government to take a more active role in addressing labour and human resource issues, saying the current approach may hold back Sabah’s economic growth.
“The State Government has been touting increased focus on various economic sectors, but has not taken concrete steps to address the critical ingredient, namely, how to gainfully utilise the State’s human resources to propel its economic plans,” Sabah Employers Association President Yap Cheen Boon told a media conference, Thursday.
Yap, who spoke on behalf of the coalition, said the concern comes amid the reality that Sabah has the second largest working population in the country, yet fewer than 800,000 people hold steady jobs and the State records the highest unemployment rate in Malaysia at around 110,000 people.
He said the business community is eager to engage but needs a proper platform to do so.
“Both the Sabah Labour Advisory Council and the Sabah TVET Council were launched in May 2025, yet no concrete meetings have been called to discuss and carry out real plans.
“This frustration is shared by both employer and employee representations,” he said.
He also raised concerns about upcoming national policy changes, including a minimum wage review and new flexible working rules.
Yap said decisions made at the Federal level without local input could do more harm than good.
“Without good understanding and acceptance of Sabah’s unique economic landscape, Federal-dictated policies will only burden Sabah businesses more, impacting on employment,” he said.
In addition, he said the State Government’s current stance appeared to be one of leaving all human resource matters to Federal agencies.
Additionally, he said building a skilled and gainfully employed workforce must go hand in hand with any economic development plan.
“Human resource is about skillset upgrade and sustainable gainful employment by viable local businesses.
“Further inaction or a passive attitude will only see the State continue to perform at the bottom rung compared to other Malaysian states,” he said.
Present were Persatuan Usahawan Sabah President Jessie Ambukon and Timber Association of Sabah Governing Council Member Fong Ming San, among others.
The 16 associations behind the joint statement include the Malaysia Employers Federation, Sabah Housing and Real Estate Developers Association, Sabah Builders Association, Federation of Malaysia Manufacturers – Sabah Branch, SME Association of Sabah, Sabah Timber Industries Association, Sabah Freight Forwarders and Logistics Association, Sabah Furniture Association, The East Malaysia Planters’ Association, Federation of Sabah Industries, Sabah Omnibus Operators Association, Malaysia Entrepreneurs’ Development Association, Sabah China Chambers of Commerce, Persatuan Usahawan Sabah and Dewan Perniagaan Muslim Sabah.
