Man­u­fac­tur­ers claim charges costly

New Straits Times - - Business - Ooi Tee Ching

Man­u­fac­tur­ers laud the gov­ern­ment’s com­mit­ment in en­cour­ag­ing on­line ap­pli­ca­tions of for­eign worker hires, but ques­tion the costly charges.

Em­ploy­ers of for­eign work­ers, here, were re­spond­ing to MyEG Ser­vices Bhd’s (MyEG) re­cent an­nounce­ment con­firm­ing its RM553.85 mil­lion gov­ern­ment con­ces­sion to pro­vide on­line re­newal of tem­po­rary em­ploy­ment passes for for­eign work­ers.

In its fil­ing to Bursa Malaysia on Thurs­day, MyEG said the fiveyear con­ces­sion was to pro­vide the on­line ser­vice from May 23 2015 to May 22 2020.

Five months ago, the stock ex­change rep­ri­manded MyEG and fined its man­ag­ing di­rec­tor Wong Thean Soon RM50,000 for the late dis­clo­sure on its ap­point­ment to im­ple­ment the fully on­line re­newal of for­eign work­ers’ per­mit.

When con­tacted by NST Busi­ness yes­ter­day, Malaysian Iron and Steel In­dus­try Fed­er­a­tion (Misif) pres­i­dent Datuk Soh Thian Lai ques­tioned the move to out­source the for­eign work­ers’ per­mit re­newal.

“Steel com­pany em­ploy­ers are fac­ing ris­ing cost of do­ing busi­ness. We ap­peal to the gov­ern­ment to take on cost-sav­ing mea­sures to rec­tify this wor­ry­ing de­vel­op­ment that is hurt­ing our econ­omy,” he added.

Malaysian Rub­ber Glove Man­u­fac­tur­ers As­so­ci­a­tion pres­i­dent De­nis Low Jau Foo noted on­line ap­pli­ca­tions to the gov­ern­ment were sup­posed to be a cost-sav­ing plat­form, but the charges im­posed had the op­po­site ef­fects of rais­ing the cost of do­ing busi­ness.

“Our main con­cern is MyEG over­charg­ing em­ploy­ers us­ing the on­line ap­pli­ca­tion plat­form,” said Low.

Fed­er­a­tion of Malaysian Man­u­fac­tur­ers pres­i­dent Tan Sri Dr Lim Wee Chai said: “It is good that the gov­ern­ment en­cour­ages elec­tronic ap­pli­ca­tions and ap­provals. Man­u­fac­tur­ers, how­ever, are very con­cerned about the ex­pen­sive charges im­posed.”

MyEG Ser­vices Bhd has won a five-year RM553.85 mil­lion gov­ern­ment con­ces­sion to pro­vide on­line re­newal of tem­po­rary em­ploy­ment passes for for­eign work­ers.

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