GEORGE TOWN: A foreign workers outsourcing company here has called for a thorough study before the Government makes it mandatory for all foreign workers to be medically insured.

IRC Global Search (M) Sdn Bhd managing director Michael Heah said paying RM120 per worker would affect the operations cost and survival of small and medium enterprises (SMEs).

He said SMEs were already paying high levy, insurance, workers’ loans and other related costs to hire a foreign worker.

The Government recently announced the mandatory medical insurance coverage as foreign workers had allegedly left public hospitals with unpaid bills amounting to RM18mil.

It has fixed the annual insurance premium at RM120 per worker.

Thirty-two registered insurers have been picked to provide the medical coverage for foreign workers from Jan 1.

“Assuming we have about 1.5 million legal foreign workers, an estimated RM180mil would have to be paid by employers to the insurance companies.

“This will be 10 times the unpaid hospital bill amount. We believe with proper controls and management by the government hospitals, the bills can be reduced further,” Heah told a press conference in Bayan Lepas here yesterday

He claimed the unpaid bills of foreign workers at the government hospitals were mostly incurred by illegal workers.

“It is unfair for employers to indirectly pay for the hospital bills of the illegal workers,” he said.

Deputy Human Resource Minister Datuk Maznah Mazlan had reportedly said on Sunday that action would be taken against those who employ uninsured foreigners, adding that the work permits of their workers would not be renewed.

To this, Heah said each employer should be allowed to buy a blanket insurance coverage for their foreign workers.

“The employers can then replace the name of insured workers who have either resigned or have their contracts terminated.”

Remark form Star paper