In order to protect their welfare, foreign workers will now be required to register with their respective employers and not with the labour supply companies, said Human Resources Minister Dr Fong Chan Onn today.
He said this would also allow the authorities to take prompt action in the event of any problems at work sites.
The minister added the procedure would also regulate entry of foreign workers into the country and ensure workers coming in complied with requirements laid down by employers.
"If they go through labour suppliers and are attached to a factory, they are not regarded as factory workers but a worker of that labour supply company.
"So, if anything happens at that factory, we are not sure how the Employment Act will come into play as they were not recruited as a factory worker," he was quoted as saying in a Bernama report.
However, Fong said the government did not intend to stop the services of agencies which supplied foreign labour.
He said it was up to the employers to choose whether to source for foreign workers through the agencies or by themselves.
Commenting on the call by the Malaysian Trades Union Congress (MTUC) to the government to stop signing Memorandums of Understanding (MoUs) with third countries on foreign labour, he said the MoUs were important as they protected the interests of both sides.
Excess workers
In a related development, MTUC today welcomed the government's decision to tighten the regulations on the recruitment of foreign workers.
Its president, Zainal Rampak, said it had been urging the government over the years not to recruit any more foreign workers.
He said the government should gradually phase out foreign workers already employed in the country upon completion of their employment contracts.
He claimed that local employers had always used foreign workers as a convenient tool to marginalise local workers and boost profits by artificial depression of local wage growth.
Yesterday, Fong reportedly said the cabinet was concerned about excess foreign labour in the country as it would undermine the 'locals first' policy.
"The MTUC has received numerous complaints from its affiliates that local workers who have been dismissed, retrenched or subjected to downsizing through voluntary separation schemes (VSS) have been replaced almost immediately by migrant workers, at much lower wages."
"Employers have always used foreign workers as a counter-bargaining tool when negotiating terms and conditions with unionised workers. They have also resorted to contracting, sub- contracting and outsourcing to undermine unions' collective interest," said Zainal.
Last resort
Meanwhile, Malaysian Employers Federation (MEF) executive director Shamsuddin Bardan said employing foreign workers was a last resort to fulfil production requirements.
He said the recent move by the ministry to stop the supplying foreign workers through labour contractors would adversely undermine local industries' operations.
"The services of the contractors are vital for the manufacturing and agricultural industries where the demand for workers fluctuates.
"Due to the seasonal and fluctuating nature of this demand, it is more cost-effective for employers to utilise the services of workers provided by the contractor so that employers can keep the headcount low," he said.
He said it was a fallacy to assume that it was cheaper for local employers to engage foreign workers as opposed to the employment of local workers.
"An annual levy on foreign workers is imposed and employers are also required to provide accommodation, medical check-ups and transportation from their home country to Malaysia and back, which constitutes a significant part of the cost of hiring foreign workers," said Shamsuddin.
