Processing fee for rehiring foreign workers waived

GOOD news for the construction industry! The Construction Labour Exchange Centre (CLAB) will waive the RM636 processing fee for rehiring foreign workers for employers who meet its requirements.

This means the cost of rehiring a foreign worker will be reduced to RM4,566, from RM5,202 currently.

The move, which is estimated to save the industry more than RM30 million in the next one year, will help employers get more workers faster, thus easing the current acute shortage of labour, Nanyang Siang Pau reported yesterday.

CLAB was set up in 2003 by the Construction Industry Development Board pursuant to a decision by the Cabinet committee on foreign workers and illegal migrants to bring in and redistribute foreign workers for companies or organisations in the country. According to the report, CLAB can supply up to 15,000 workers, including locals, to the industry but only employers who have the quota and meet the requirements can apply for them.

Meanwhile, industry players hope for a reduction or waiver in some of the fees in rehiring foreign workers, such as commissions for middlemen services (more than RM1,000) and compound (RM800).

United Malaysian Contractors Association said the processing fee waiver is a good start but felt that the compound of RM800 (RM500 for employers and RM300 for a foreign worker) as well as RM100 for a special pass, should also be waived to further reduce the total cost of rehiring a foreign worker to RM3,666.