Issue at hand: Industries want a more flexible approach in the approvals for foreign workers.
PETALING JAYA: Industries are projecting slower growth and recovery following the government’s blanket freeze on foreign worker approvals, says an apex trade organisation.
National Chamber of Commerce and Industry of Malaysia (NCCIM) president Tan Sri Soh Thian Lai has called on the government to reconsider the decision.
“The government should cater to market-driven needs for foreign workers.
“Approvals should be given to companies with strong justification and with no outstanding quota approvals.
“Having a total and across-the-board halt in application and approval process will only intensify the challenging business environment.
“This is especially true when there continues to be projections of slower global growth that could impact our industries and the economy at large,” he said in an interview yesterday.
Soh, who is also Federation of Malaysian Manufacturers (FMM) president, said industries were grateful for the government’s Foreign Worker Recruitment Relaxation Programme early this year which had helped address workforce shortages.
But he pointed out that some industries with foreign worker quotas had to stagger their foreign worker intake due to lower sales and production.
“Some have brought workers in batches to meet changing production needs, which have dropped significantly since they applied for the workers.
“Some have delayed hiring workers depending on how quickly business picks up,” he said.
More importantly, Soh noted some industries which maintained production, including catching up on backlogs and preparing for the peak season at the end of the year, would need workers.
Soh also urged the government to avoid outsourcing agents bringing in foreign workers without job placements, which is against the current policy.
“The government should tighten the approval process and allow only the ultimate employer to bring in foreign workers,” he said.
When contacted, SME Association of Malaysia national president Ding Hong Sing said the government should only implement such a freeze when its system for foreign worker application and approval is free from bureaucracy.
“Each employer has 18 months to bring in their approved foreign workers.
“If I can send them back when my orders are low and arrange for them to return without much hassle when I have more orders, then it is okay.
“It’s like the just-in-time system, but it is not the case. We waited so long before this,” he said.
He said businesses should be allowed to get approval for foreign workers whenever they could justify such a need.
“Otherwise, it will only affect production and cause orders to go elsewhere.”
Ding also pointed out most SMEs were not complaining of a worker shortage now because the gaps were filled by 680,000 foreign workers who left their previous employers.
“They then got themselves recalibrated with the new employers,” he said.
He said many employers did not report when workers ran away to avoid paying the penalty of RM750 for each worker.
“So when these employers need workers later when production requires it, they will run into a shortage,” he said.
“The government should be flexible.
“Businesses have ups and downs, and continuous application should remain for those who need more workers when orders and production increase,” he said.
On Tuesday, Home Minister Datuk Seri Saifuddin Nasution Ismail said there were no plans to allow new foreign workers to be brought in as close to 1.8 million applications had already been approved for all sectors.
