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News Mixed Reaction from Employers on freezing of Foreign Workers in Malaysia

June 24, 2020by Admin

The Government decision to freeze on new foreign workers intake in all sectors until December 2020 received mixed response from industry players despite government efforts to increase local workers intake. FMM President Tan Sri Soh Thian Lai said the freeze would affect manufacturers who were expanding their production to meet the increase in orders as Malaysian worker not keen to work in 3D jobs.

“We urge the government to keep the freeze in foreign recruitment as an option. Should the global situation improve with demand for greater output and an increased role for Malaysian manufacturers in the global chain, their labour requirements must be met quickly by allowing direct recruitment,” he said.

With the local manpower unemployment rate reaching 5% with about 750,000 workers being displaced in latest statistic in April, Soh said manufacturers are encouraged to fill vacancies with locals, especially for skilled labour and middle and upper management level positions.

“Foreign workers are usually hired for general operator-level jobs due to the scope of work, industry and job expectations.

“Despite offering higher wages, employers continue to face high turnover and absenteeism among local workers” he added.

InterManpower.com CEO Michael Heah fully supported the Government decision and agreed that employers should give priority consider local workers instead of foreign workers. Employers should now take the opportunity to rebrand the job name and vacancies as many Malaysians perceived local operator job is meant for foreign workers. They should educate and train their department heads and supervisors to motivate and retain local workers in view of the “labor challenges”.

While manufacturers said the move would create “labour challenges” especially for those who need to replace returning workers, the Malaysian Employers Federation (MEF) supported the decision, saying it would give the opportunity to locals who were laid off to find employment.

As the government was now allowing the redeployment of retrenched foreign workers to be absorbed by companies needing additional workers, he said the process would be efficient and allow for a smooth transfer.

On Monday, Human Resources Minister Datuk Seri M. Saravanan said there would be no new intake of foreign workers in all sectors until the year-end as local workers would be given priority to fill vacancies.

Malaysian Estate Owners’ Association secretary Lim Ban Aik said the freeze was not helping especially for plantation sector as it was already facing a labour shortage nationwide.

“The impact in the plantation sector is going to be drastic,” he said, adding that they were unable to attract local workers as Malaysians were not interested in plantation work.

“There seems to be a reluctance, which is unfathomable as the industry offers good pay and perks,” he said.

He said the low wage perception was “a thing of the past” as there was a union that protects the local workers, adding that they were now working towards raising the standard of living by adopting a living wage.

“We want Malaysians to work for us in plantation industry but they prefer other industries,” he said.

Lim said the shortfall of foreign workers, who had returned to their countries before and just after the movement control order (MCO), needed to be replaced.

“I appreciate the government’s efforts to contain the spread of Covid-19 but to simply issue a blanket ban to halt the hiring of foreign workers would not solve the problem for the plantation sector.

“The government should be fully aware that Malaysian workers are not interested in taking up the jobs vacated by foreign workers.

“This would make the industry uneconomical. The government should not take the easy way out but work with the industry players to find a win-win solution,” he said.

He noted that the foreign worker shortage would be compounded as local workers, currently in the plantation sector, might opt to work in secondary or tertiary manufacturing industries as the working conditions were more palatable.

MEF executive director Datuk Shamsuddin Bardan said almost 30,000 local workers lost their jobs due to the Covid-19 pandemic and the MCO.

“The move is reasonable and should be implemented as many local workers will likely lose their jobs or have lost their jobs already.”

“This will help preserve jobs and give priority to local workers,” said Shamsuddin.

He, however, said the government should give employers the flexibility to hire foreign workers, who were already in the country.

“There are some sectors who are doing well and facing a shortage of local workers, so the government should allow them to hire existing foreign workers, who are no longer needed by their current employers,” he said.

He acknowledged that there were instances where local workers were hesitant to take on 3D (dirty, dangerous and difficult) jobs, and that there needed to be both an attitude change with locals and rebranding of the jobs.

Shamsuddin said the society needed to stop looking down on those who took up 3D jobs.

“Maybe jobs can also be rebranded, so instead of calling a person a cleaner, maybe he or she can be called an environment assistant,” he said.

According to InterManpower, the government decision to freeze foreign workers intake would definitely help the local workers to get the job first.

“Current unemployment is at 750000 people as of April 2020, and the number might be increased. This is the chance for the local workers to get job employment by company that requires workers to meet their production demand.”

“Not all local workers that perceive factory 3D job as low level, we have some local workers who are working in the factory and get promoted.”

“It is about hardworking and upskilling to improve themselves with some motivation and counselling which we are providing to the local workers.

“By having local to fill up the vacancies available also tell foreign investors that Malaysia have ready manpower to support their needs to invest in our country.”

“Foreign investment will help to spur our economy that is affected by Covid-19 pandemic.”

Source: The Star, 24 June 2020