Sabah govt, industry players still working out 'best way forward' for worker housing law

KOTA KINABALU: The Sabah government will complete its consultations with stakeholders before implementing the federal law on minimum standards for worker housing, says a senior state civil servant.
The Federal Government has completed the legislative process on the matter but the state is still working out the best way forward, state Science, Technology and Innovation Ministry permanent secretary Datuk Mohd Hanafiah Mohd Kassim said.
ALSO READ: New amendments to Sabah and Sarawak labour ordinances take effect from May 1
'The law has not been enforced in Sabah yet. We are still at the consultation stage, and more discussions with industry players are needed to assess readiness.
'Many employers are concerned about the cost implications.
"They need time to plan their budgets, and we believe this can be resolved through continuous engagement," he said on Monday (May 19) when asked if the law has come into force in the state.
He added that the ministry is working closely with the Sabah Labour Department on the matter.
Hanafiah said industry players informally raised the matter during several recent meetings, and the state government advised them to submit their views in writing.
"Businesses in Peninsular Malaysia were given a grace period before implementation.
"Sabah needs the same kind of consideration," he said, adding that workshops and briefings would be held to ensure employers are adequately prepared.
Several stakeholders have urged the state government to hold off from including worker housing requirements into amendments to the Sabah Labour Ordinance (SLO).
ALSO READ: Hajiji: Good labour laws key to Sabah's economic growth
Hanafiah acknowledged industry concerns and said the state remains committed to finding a balanced solution.
'We understand the business community's position. We aim to ensure any new regulations are implemented practically and fairly, without neglecting worker welfare,' he said at the launch of the Labour Legislation Transformation Programme 2025, here.
Also present was Trade Union Affairs Department director-general Mohd Asri Abdul Wahab.
Sabah Employers Association (SEA) president Yap Cheen Boon had said earlier that introducing the new requirements without proper consultation would add more strain to struggling businesses.
'We are urging the Sabah government to pause the amendments and reclaim decision-making authority over the SLO.
"Any changes must reflect Sabah's unique business landscape,' Yap told a joint press conference last year.
ALSO READ: Minimum wage: Caught between surviving and truly living
The conference was called by the Federation of Malaysian Manufacturers (Sabah), Federation of Sabah Industries, Sabah Entrepreneurs Transformation, Kota Kinabalu Hardware, Machinery and Building Materials Traders Association, and Sabah Timber Industry Association, among others.
Yap also highlighted Sabah's fragile post-pandemic economic recovery, pointing out that while the state recorded 3.7% growth in 2022, its gross domestic product was still lower than in 2019.
He added that employers are already facing multiple new obligations, including safety regulations and wage-related reforms, and the added pressure from new housing requirements could worsen the situation.
When confirming that the Sabah Labour Ordinance (Amendment) Act 2025 and the Sarawak Labour Ordinance (Amendment) Act 2025 would come into force on May 1, Human Resources Minister Steven Sim said the exception was Section IVA, which specifically addresses the minimum standards for workers' housing, accommodation and facilities.

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