NAVIGATING THE SOCIOECONOMIC IMPACT BY EVALUATING THE MINIMUM WAGE POLICY ON SABAH'S WORKFORCE
DOI:
https://doi.org/10.51200/mjbe.v11i1.5633Keywords:
Minimum wage, Sabah, income inequality, employment, poverty reductionAbstract
The implementation of the minimum wage policy in Malaysia has yielded significant benefits for low-income workers, notably in reducing poverty and lifting many above the poverty line especially in Sabah. While the policy has faced criticism, its positive effects on the economy are evident through increased consumer spending and overall economic growth. Importantly, in Sabah, the policy did not result in significant adverse effects on employment, as initially feared. Instead, it contributed to higher wages and an improved standard of living for low-income workers in the state. However, the policy's impact has not been uniformly positive across all sectors, with some experiencing challenges that may require a more nuanced approach. Moving forward, a targeted strategy in setting minimum wage rates could be crucial to ensuring the policy's long-term success, balancing the needs of workers with the unique conditions of different industries.
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