24/07/2026
FMM expressed disappointment over the confusing statement made by Datuk Johnnybone J. Kurum, Assistant Minister of the Ministry of Industrial Development, Entrepreneurship and Transport (MINDET), during Question Time in the State Legislative Assembly on Thursday, July 23, 2026. He stated that the ๐๐ญ๐๐ญ๐ ๐๐จ๐ฏ๐๐ซ๐ง๐ฆ๐๐ง๐ญ ๐ซ๐๐ช๐ฎ๐ข๐ซ๐๐ฌ ๐ง๐๐ฐ ๐ฆ๐๐ง๐ฎ๐๐๐๐ญ๐ฎ๐ซ๐ข๐ง๐ ๐ข๐ง๐ฏ๐๐ฌ๐ญ๐จ๐ซ๐ฌ ๐ญ๐จ ๐๐ฆ๐ฉ๐ฅ๐จ๐ฒ ๐๐ญ ๐ฅ๐๐๐ฌ๐ญ ๐๐% ๐๐๐๐๐ก๐๐ง๐ฌ ๐๐ฌ ๐ฉ๐๐ซ๐ญ ๐จ๐ ๐ญ๐ก๐๐ข๐ซ ๐ฆ๐ข๐ง๐ข๐ฆ๐ฎ๐ฆ ๐ฅ๐จ๐๐๐ฅ ๐ฐ๐จ๐ซ๐ค๐๐จ๐ซ๐๐.
So far, there is no written policy by MINDET requiring new manufacturers to employ 80% local Sabahans. In contrast, the ๐๐๐ฅ๐๐ฒ๐ฌ๐ข๐๐ง ๐๐ง๐ฏ๐๐ฌ๐ญ๐ฆ๐๐ง๐ญ ๐๐๐ฏ๐๐ฅ๐จ๐ฉ๐ฆ๐๐ง๐ญ ๐๐ฎ๐ญ๐ก๐จ๐ซ๐ข๐ญ๐ฒ (๐๐๐๐), this condition is stipulated in ๐๐๐ฆ๐ฉ๐ข๐ซ๐๐ง ๐ of the ๐๐๐ง๐ฎ๐๐๐๐ญ๐ฎ๐ซ๐ข๐ง๐ ๐๐ข๐๐๐ง๐๐, ๐ซ๐๐ช๐ฎ๐ข๐ซ๐ข๐ง๐ that ๐๐% of the workforce be ๐๐๐ฅ๐๐ฒ๐ฌ๐ข๐๐ง.
However, ๐๐ข๐ง๐ข๐ฌ๐ญ๐ซ๐ฒ ๐จ๐ ๐๐ง๐ฏ๐๐ฌ๐ญ๐ฆ๐๐ง๐ญ, ๐๐ซ๐๐๐ ๐๐ง๐ ๐๐ง๐๐ฎ๐ฌ๐ญ๐ซ๐ฒ (๐๐๐๐) announced in December 2024 that the ๐ฆ๐๐ง๐ฎ๐๐๐๐ญ๐ฎ๐ซ๐ข๐ง๐ ๐ฌ๐๐๐ญ๐จ๐ซ ๐ฐ๐จ๐ฎ๐ฅ๐ ๐๐ ๐๐ฑ๐๐ฆ๐ฉ๐ญ๐๐ ๐๐ซ๐จ๐ฆ ๐ญ๐ก๐ ๐๐:๐๐ ๐๐ฆ๐ฉ๐ฅ๐จ๐ฒ๐ฆ๐๐ง๐ญ ๐ซ๐๐ญ๐ข๐จ requirement until the Multi-Tier Levy Mechanism (MTLM) is fully implemented.
To-date, this exemption remains in effect, providing flexibility for industries to adjust their workforce requirements more effectively.