EXECUTIVE
SUMMARY

Migran Berdaulat – This study estimates a living wage for migrant workers in palm oil plantations in Sabah, Malaysia, through interviews with 26 workers from three different plantations. The research begins by contextualising Malaysia’s economic dependence on migrant labour, especially in the palm oil sector, and addresses issues related to irregular migration and undocumented workers in Sabah. The primary aim of this research is to assess the living conditions of migrant workers and their families on these plantations and to propose a suitable living wage. The methodology includes a detailed case study approach and the application of the Anker Methodology for calculating living wages.

The study provides comprehensive profiles of the three plantations, including overviews of the plantations, the number of workers, and their working conditions. It also examines the piece-rate wage system prevalent among migrant workers. The calculation of a living wage is thoroughly explained, encompassing definitions, principles, and components such as food costs, housing costs, and non-food non-housing costs. The study also considers migrant-related costs in its calculations and discusses the cost of illegality.

By calculating the cost of living using the Anker methodology, the study finds that the living wage for migrant workers on palm oil plantations in the researched region in Sabah is MYR 2,540. The researched plantations provide free accommodation for their workers. Taking this in-kind benefit into account, the living wage on these plantations is MYR 2,235. This is significantly higher than the current Malaysian minimum wage of MYR 1,700. The calculation shows that both the wages paid and the minimum wage are well below what can be considered a living wage, even taking into account reduced housing costs (where many companies provide free housing).

Full Version Living Wage for Migrant Workers in the Palm Oil Plantations in Sabah, Malaysia