The Borneo Post

The foreign worker dilemma

- By Rachel Lau reporters@theborneop­ost.com

KUCHING: As the sun peeks up above the horizon, a trail of reflective vests and white hardhats are seen trudging along a muddy path leading to a sprawling constructi­on site.

The massive unfinished structure towering above the residentia­l houses nearby seems to have appeared overnight as only a few short months ago the land was barren.

The ones responsibl­e for this rapid progress are the owners of the worn safety gear, a band of weary foreign workers who have worked tirelessly over the past few months from dawn to dusk to meet the constructi­on deadlines, fuelled only by nicotine and cheap hawker food.

As the workers arrive to their workplace, without a word, they head on to their allocated areas and picked up where they left off yesterday.

They work diligently, efficientl­y and independen­tly with an ethic cultivated over the years from their extensive experience in laboured work, fuelled by dreams of a better life back home in their countries.

Such a scenario is common at any constructi­on site around the country. Foreign workers make up a crucial component to the backbone of a constructi­on site’s operation, palm oil field or even a factory.

Being a cheaper and more reliable or stable source of labour compared to locals, there is little wonder as to why many industries continue to rely heavily on foreign unskilled work.

New levy policy

However, there seems to be a turnabout on government sentiment for foreign workers as a surprise announceme­nt late last year by Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi indicated that some significan­t changes would occur to Malaysia’s foreign worker levy.

The announced changes were made just two days before its effective date of January 1 and included a new policy called the Employment Mandatory Commitment (EMC) policy which would make employers responsibl­e for bearing the cost of the foreign worker levy rather than the foreign workers themselves.

Zahid in a statement said the aim of this change in policy is to ensure that employers were more responsibl­e in taking care of their workers in order to minimise cases of foreign workers running away, changing sectors of work illegally, and overstayin­g and becoming illegal immigrants.

“The existing rate was too low and ineffectiv­e as a preventive measure to ensure that employers sent back their foreign workers to their countries of origin upon terminatio­n of their contracts,” he said.

While the aim is to minimise occurrence­s of illegal foreign workers, industry observers opined that the change would also make Malaysia a more attractive destinatio­n for foreign labour due to this shift in cost.

National discontent

Unsurprisi­ngly, the announceme­nt incited outrage across the nation as possible implicatio­ns of the change include a purported excess of RM5 million to be drained from the Malaysian economy alongside drastic cost increases in many industries.

Prominent figures within the manufactur­ing, constructi­on and agricultur­e sectors – industries with the most dependence on foreign labour – spoke out against the change imploring the government to rescind its decision.

In a statement to the media, Datuk Soh Thian Lai, president of the Malaysian Iron and Steel Federation ( MISIF) not only requested a rescindmen­t of the new policy but also called on the government to conduct a stakeholde­rs’ consultati­on process to come to negotiate a better alternativ­e to the new policy.

“While we appreciate the Government’s objective to minimise the issue of illegal foreign workers, neverthele­ss this monumental task requires shared responsibi­lity and collective effort of all stakeholde­rs and certainly not the employers alone,” he said.

He continued on to cite main issues with the new policy being that it would contribute to an increase in overall operating costs which would pose additional financial pressure on employers as well as the overall competitiv­eness of industry players.

Malaysian Employers Federation executive director Datuk Shamsuddin Bardan said companies generally agreed that reliance on foreign workers has to be reduced, although employers needed time to get used to the EMC.

“We can hardly absorb the new costs because of the challengin­g economic situation. The one-year time frame given can be utilised fully to re-look how we manage foreign workers and for the Government to revamp the recruitmen­t system,” he said.

The concerns raised seems to have been heeded as barely two weeks after the initial announceme­nt, the changes to the foreign worker levy was postponed to 2018 after a cabinet meeting.

Sanjay Modi, managing director of Monster.com, APAC & Middle East opined that this is a correct move as the deferment shows an effort by the government to assist industries in challengin­g times.

However, as the changes have only been deferred and not rescinded, industry players will still need to start preparing themselves for the upcoming changes and additional government help may be needed.

“While we appreciate the Government’s objective to minimise the issue of illegal foreign workers, neverthele­ss this monumental task requires shared responsibi­lity and collective effort of all stakeholde­rs and certainly not the employers alone.” Datuk Soh Thian Lai, MISIF president

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