Media Statement by YB Datuk Chan Foong Hin, Deputy Minister of Plantation and Commodities, and Member of Parliament for Kota Kinabalu on Tuesday, 15 October 2024
I would like to congratulate my friend YB Steven Sim, the Minister of Human Resources, on the successful tabling of the Sabah Labour Ordinance (Amendment) Bill 2024 (OBS Bill) for the second and third readings in the Dewan Rakyat yesterday.
This is a timely step to fulfill the aspirations of the MADANI Government to elevate the dignity of workers across the country, including in Sabah. For instance, setting minimum standards for housing, accommodation, and basic amenities for workers on plantations not only guarantees their welfare but also aligns Sabah’s legal framework with international conventions. This, in turn, enhances the industry’s readiness to comply with international legal requirements such as the European Union’s Deforestation-Free Regulation (EUDR). This move will undoubtedly increase the competitiveness of the country’s exports, such as palm oil and rubber products, due to the industry’s ability to operate within a sustainable and eco-friendly framework.
Additionally, strengthening workers’ protection is a fundamental step to ensure the sustainability of Sabah’s labour market. With the concerted efforts of the government and industry players to create a more conducive working environment, the issue of talent migration out of Sabah can also be addressed.
In this regard, the OBS Bill extends protection to all private sector workers regardless of wages or job types. Overtime pay eligibility, pay for public holiday and rest day, and termination benefits have also been extended to more workers, with the eligibility threshold raised to those earning below RM4,000.00 from the previous RM2,001 per month. It also enhances worker benefits by increasing the number of paid public holidays to 15 from 14, with Malaysia Day (16 September) added as a mandatory paid public holiday for workers.
To strengthen protection for workers with families, a new section prohibiting the unjust termination of pregnant female workers due to pregnancy has been included. Maternity leave for female workers has been increased to 98 days, compared to the previous 60 days. At the same time, a new provision for seven (7) days of paid paternity leave has been introduced, along with measures to prevent the exploitation of children and youth workers.
It is hoped that these provisions will serve as a foundation for improving the living standards of workers who are the backbone of Sabah’s and the nation’s economic sectors.
