FSI backs progressive wage policy but urges careful implementation

LocalBusiness & Finance
16 Sep 2025 • 12:41 PM MYT
Daily Express
Daily Express

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KOTA KINABALU: The Federation of Sabah Industries (FSI) has expressed strong support for the government’s Progressive Wage Policy (PWP), calling it a fair and sustainable approach to linking wages with productivity, skills, and performance.

However, FSI cautioned that poor implementation could strain SMEs, hinder job creation, and create unrealistic wage expectations.

“To ensure PWP succeeds, the government must provide training subsidies, financial incentives, and lower business costs,” it said in a statement, stressing that a clear framework and support system are vital for a smooth roll out.