Under a new policy for foreign labour, Malaysia will no longer hire workers from Bangladesh but will turn to other countries including the former Soviet states for its labour needs with Indonesia being the last choice.

Deputy Prime Minister Abdullah Ahmad Badawi said today the new policy was effective immediately with employers being allowed to recruit workers from India, Thailand, Cambodia, Nepal, Burma, Laos, Vietnam, Philippines, Turkmenistan, Uzbekistan and Kazakhstan

Indonesian workers will be given last priority while Bangladeshi workers will no longer be hired. Indian workers will only be allowed to work in the plantation sector.

Key sectors allowed to employ foreign workers include manufacturing, export-orientated industries, construction, agriculture and consumer services.

Indonesian workers can still be hired as domestic help and plantation workers. For other sectors, special permission for them is required from the home affairs ministry, said Badawi, who also heads the ministry, at a dialogue session this morning at Putrajaya.

The dialogues panelists included International Trade and Industry Minister Rafidah Aziz, Human Resources Minister Fong Chan Onn and Home Affairs Ministry secretary-general Aseh Che Mat.

Badawi said foreign workers currently employed locally will be allowed to complete their contracts while employers who have already obtained permits will still be allowed to bring in workers in accordance with the earlier approvals.

There will be no cancelling of (issued) permits (for Bangladeshi and Indonesian workers) he said.

Caning to be included

In recent weeks, the government has been enforcing a strict immigration policy to reduce the number of foreign workers, especially those from Indonesia, following cases of riots involving immigrant workers.

The deputy prime minister said the new labour policy limits employment to three years with possible yearly extensions for up to five years. Those who want to stay longer will first have to be certified by the National Vocational Training Council for specific skills.

The workers may be required to sit for tests and exams, he said.

Badawi also announced plans for an amendment next month to the Immigration Act to better regulate foreign workers activities in the country.

We will impose heavy punishment on illegal workers and those who employ them, he said adding the penalties would include caning.

The new policy for foreign labour also requires the workers to undergo annual health checks before obtaining or renewing their work permits. This will prevent foreign workers from bringing over diseases which could spread to the public, he said.

We (the government) have engaged the services of medical clinics in the workers respective countries to ensure they come with a certificate (proving) clean bill of health, said Badawi.

The government may also make it compulsory for employers to provide health insurance for the workers, he added.

Responding to a complaint that frequent police raids resulted in workers running away, the deputy premier suggested employers in the construction industry build dormitories to accommodate foreign workers.

Employers should take better care of their workers especially of those who live in squatter areas. If there are problems in this areas, naturally police will raid nearby construction sites, he said.

Govt schools out-of-bounds

When asked if foreign workers are allowed to form unions, Fong clarified that contract workers cannot be unionised although in practice, they have been allowed to participate in unions.

He said although the Employment Act provides for foreigners to participate in unions, the practice is not permitted by the Immigration Act.

At a press conference after the two-hour dialogue, Badawi said foreign workers will not be allowed to send their children to national schools.

Those currently schooling will be given notice, he said, adding there was no restriction on them continuing their education in private schools.

Badawi also stressed that no moves were being planned to restrict foreigners entering the country on tourist permits.

We only have problems with those coming here to seek employment and that aspect of immigration laws may have to be amended. We want to send them back but there is no evidence, so we have to negotiate and seek the cooperation of the ministry of foreign affairs, he added.

The dialogue session, attended by some 150 people, was organised to brief employers on the new foreign labour policy and social economic problems caused by these workers.

At present, there are 769,000 legal foreign workers in Malaysia, of which almost two thirds are from Indonesia. However, when illegal workers are included, the figure is estimated to be between two to three million.