When Rm1,800 A Month Is ‘too High’ A Salary In Sabah

The average salary in Sabah was only RM3,127 a month in March 2023, according to official statistics. (Wikipedia pic)

PETALING JAYA: After graduation, Norashikin Diyana tried to get a job in her home state of Sabah but her asking salary of RM1,800 a month was considered “too high”.

That prompted her to go west, to Peninsular Malaysia where, she said, salaries are much higher for jobs requiring the qualifications and skills that she possesses.

“I have a bachelor’s degree in management technology, but they didn’t care about my degree,” she told FMT.

Norashikin’s predicament is not unique to her. Businesses in Sabah pay among the lowest salaries compared with the rest of the country, according to data from the statistics department.

Many Sabahans have crossed the South China Sea for better paying jobs.

However, business groups say enterprises in Sabah are small and have limited resources, making it difficult for them to pay wages equivalent to that in the peninsula.

Official statistics show the average salary in March 2023 was RM4,858 a month in Putrajaya, RM4,521 in Kuala Lumpur and RM3,885 in Selangor. On the other hand, in Sabah, the average salary was only RM3,127 a month.

The reason is that many businesses in Sabah are family-owned, small or medium-size enterprises focused on the domestic market, according to Christina Tee, president of the Malaysian International Chamber of Commerce and Industry.

“This means they have limited resources to offer competitive wages compared to West Malaysia,” she told FMT.

SME Association of Sabah president Foo Ngee Kee said running a business in Sabah is costly due to frequent power and water supply disruptions, poor connectivity within the state, and limited links to other states and abroad.

“The lower revenue, coupled with higher costs of doing business or production, limits the ability of Sabah businesses to pay higher wages to their employees,” he told FMT.

Foo and Tee also agree that these factors make it difficult for companies to grow and retain skilled workers.

Madeline Berma, an economist, cited a lack of political stability and adequate infrastructure as factors that have prevented businesses in Sabah from offering more competitive wages.

Madeline, who is with Institut Masa Depan Malaysia, said salaries in the more developed states are significantly higher.

“Apart from the political factor, delays in mega projects such as the Pan-Borneo (highway) have led to low investor confidence,” she told FMT.

For Norashikin, the move to Kuala Lumpur has been worthwhile. “I have found greater professional and financial stability,” she said.