Sabah has taken a step towards wider digital wage adoption after the state’s Labour Department (JTK Sabah) formally approved TNG eWallet as a recognised salary payment method for migrant workers.
With the approval, employers in Sabah can now pay migrant workers electronically instead of relying on cash-based payrolls, a system that has long been common in plantations, construction sites and remote worksites with limited access to banking services.
The recognition by the Sabah Labour Department allows wages to be disbursed through TNG eWallet using existing bank accounts via DuitNow bulk transfers. Employers do not need to integrate new systems or undergo additional technical training, lowering the barrier to switching from cash payments.
The move mirrors an earlier approval granted by the Labour Department of Peninsular Malaysia, extending the use of digital salary payments to East Malaysia and supporting broader efforts to modernise payroll practices nationwide.
According to TNG Digital, more than 100,000 migrant workers across Malaysia already receive their salaries through the eWallet platform. In 2025 alone, the company said over RM3.5 billion in wages had been disbursed digitally, suggesting that the system is already operating at scale.
Each verified TNG eWallet account is assigned a DuitNow account number, enabling employers to process payments with clearer records and improving traceability for audits and regulatory compliance. From an administrative standpoint, digital payroll also reduces the risks associated with handling large amounts of cash, including loss, theft and reconciliation errors.
For migrant workers, digital salary payments offer more than just convenience. Wages stored in an eWallet can be withdrawn as cash, used for daily transactions, or sent overseas through remittance services. Workers can also make global payments using the Touch ’n Go eWallet Visa Card, providing access to financial services that may otherwise be difficult to obtain without a traditional bank account.
While digital wage systems are not a replacement for broader labour protections, they are increasingly viewed as a tool to improve transparency, efficiency and access to financial services for workers who sit outside the formal banking system.
