On the air: Liew being interviewed at SMG’s Chinese-language radio station 988. — AZHAR MAHFOF/The Star
THE common perception is that Malaysians – especially the youth – consider jobs in the 3D (dirty, dangerous, and difficult) sectors as unfavourable occupations even today.
Deputy Investment, Trade and Industry Minister Liew Chin Tong, however, believes that it is not the aversion to those jobs that drives them away but rather, in actuality, it boils down to the pay disparity.
According to him, there are more than 1.1 million Malaysian passport holders who are working in Singapore, with some working in the top tier category.
“However, every morning, as early as 5am, if you are at the Causeway, you can see at least 50,000 motorbikes entering Singapore.
“Most of them work in jobs that pay about S$2,000 or RM6,872.80 or less. And I have asked this question of many people, and the standard answer is this: If you are at the lower end bracket, what do you do in Singapore, you are actually working in a 3D job.
“Some of them are actually graduates, but because of the currency and pay differentiation, they choose to work in Singapore in the 3D sectors,” he says during a visit to Menara Star on Tuesday.
This includes roles in hotels, security, and sanitation sectors, he notes.
During his visit, Liew also dropped in at Star Media Group’s Chinese-language radio station 988, where he was interviewed by 988 general manager Woo Bee Ay and her team. He also granted an interview to Sunday Star and SMG’s Malay-language weekly, Majoriti 7, during which he talked about his latest book, Second Takeoff: Strategies For Malaysia’s Economic Resurgence, which is a collection of essays on economics, society, and governance.
The book highlights several policy suggestions for Malaysia’s development into a high-income nation.
“So to answer this question, I have always said that it is not about the 3D jobs that Malaysians do not want to work at, but rather it is the pay that matters,” he says.
For those working in the top-tier group, he says, given the currency differentiation and various other factors such as family, income level, and the complexity of economic activities they are engaged in, it is hard to imagine these individuals returning to Malaysia for work.
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Liew, a former Penang assemblyman, recounted his experience in Penang when the state government decided to offer direct employment for rubbish collectors.
“When we first took power in Penang in 2008, most of the garbage collectors were on contracts. And these companies will hire foreign workers and pay Malaysians very little.
“In Majlis Perbandaran Seberang Perai, the decision at that time was to gradually take back the contract and the council will hire directly.
“So the council, some 10 years ago, were offering about RM1,400 (monthly salary) but if you add up everything including allowances, the take home pay would be in the region of RM2,000.
“Each time the council offers 3,000 jobs, you get 5,000 people queuing for those 3,000 jobs.
“That means, at that point of time, those on the mainland side of Penang and northern side, bordering Kedah, many people are still prepared to take a job that pays about RM2,000.
“Regardless of whether it is 3D or not,” he says.
At the same time, it is important for Malaysia to slowly reduce its dependence on foreign workers, says the deputy minister.
“We will need to reduce the numbers of foreign workers, we need to reduce the influx of foreign workers, and we want to create a tighter labour market.
“At the same time, we need to encourage corporations to move up the technology ladder,” he explains.
When asked about changing the mentality of locals towards 3D jobs, Liew replies, “It is not a question of mentality; it is a question of pay.”
He reiterates that many Malaysians are already engaging in 3D jobs overseas in countries like Singapore and Australia.
“We must move away from importing unskilled labour. This equation needs to be reworked to find a better balance,” Liew concludes.
He also highlights that there is a need to have a comprehensive review of policies to address pay disparity and improve economic conditions for Malaysians, ensuring that they do not have to seek employment abroad in undesirable sectors.
Explaining further about the issue of foreign worker reliance, Liew says that the government, in the long run, should make it clear through its policies that it will gradually reduce the number of foreign workers.
“In the long run, we should be very clear to everyone, that the government should [send a] signal, that we want to reduce the numbers of foreign workers and give a timeframe, with clear policies,” he says.
This was in line with Prime Minister Datuk Seri Anwar Ibrahim’s announcement that the government will soon implement a multi-tiered levy system in the near future, notes Liew.
“That means, maybe we can start gradually, an annual increment in 10 years time. They [companies] will know that in 10 years’ time, they will have to pay a very expensive levy, and it will be more expensive than hiring local workers,” he explains.
He stresses that to ensure the success of the initiative the government needs to work with the industries to have a smooth implementation.
“[At this point] I think we do not want to introduce [a policy in an] immediate shock.
“There is no point in introducing [a policy] to cause an immediate shock, in order to solve a 40- year-old problem. So if we can actually have that conversation and to find that sweet spot, as well as the equilibrium, and move with a 10-year horizon, I think that should be the way to go,” he says.
On Sept 11, 2023, Anwar said that the multi-tired levy system was aimed at securing job opportunities for locals and promoting automation and mechanisation while maintaining the policy of limiting foreign workers to 15% of the total workforce.
According to Anwar, skills mismatch, low wages, and slow productivity growth are the key issues hindering Malaysia’s ability to transition to a high-income economy.
“The government has unveiled several bold initiatives to implement a progressive wage model that benefits both workers and employers,” the Prime Minister had noted.
