Manufacturers' federation blasts plan to limit foreign workers to three sectors
The Federation of Malaysian Manufacturers (FMM) has expressed shock and dismay over the announcement that the government plans to limit foreign workers to only the construction, plantation and agriculture sectors once the freeze on employment is lifted next year.
"The announcement which is very sudden and lacks details on the mechanism of implementation was also done with no stakeholder consultation which is most unacceptable and disappointing to the business community, said FMM president Soh Thian Lai (photo, above) in a statement.
The Federation of Malaysian Manufacturers (FMM) has expressed shock and dismay over the announcement that the government plans to limit foreign workers to only the construction, plantation and agriculture sectors once the freeze on employment is lifted next year.
"The announcement which is very sudden and lacks details on the mechanism of implementation was also done with no stakeholder consultation which is most unacceptable and disappointing to the business community, said FMM president Soh Thian Lai (photo, above) in a statement.
"The Government has not given due consideration to the significant impact on business sustainability and the socio-economic consequences of this announcement, particularly now in the current depressed business climate," he added.
Soh said the FMM, which was founded in 1968 and represents over 10,000 members, is aware that the unemployment rate amongst locals is on the rise with the latest rate reaching 5.3 percent in May 2020 and initiatives must be taken to ensure that the displaced workers can secure jobs quickly.
"Manufacturers are definitely encouraged to ensure that vacancies can be filled with locals but FMM strongly objects to this sudden announcement which will put the manufacturing sector at a great disadvantage and will cripple most of the manufacturing sector in the country including the exporters who are one of the main revenue contributors to the economy," he said.
On Wednesday Deputy Human Resources Minister Awang Hashim told Parliament of the government's plans, saying it intended to reduce the number of foreign workers of around 2.1 million who were registered with the Home Ministry and the Ministry of Human Resources.
“In other sectors, we want the jobs to be filled by local workers,” Awang had said.
According to Soh, businesses are still reeling from the impact of the Covid-19 pandemic and the lockdown and are working on rebuilding their operations.
"As it stands now, for most companies, overall business activities including sales both domestic and exports for the next six months is still expected to be low as they continue with their business revival and recovery.
"Business recovery may take anything between four months to two years depending on the sectors and impact that Covid-19 had on the business," said Soh.
"By abruptly stopping the hiring of foreign workers, supply chains will be disrupted as local workers tend to avoid jobs with manufacturing processes that are more challenging in nature despite the offer of higher wages.
"Hence, business sustainability and jobs are at stake, even for local workers," he said.
Soh said the FMM has always maintained that businesses are aware of the need to reduce dependency on foreign workers, but any changes to the policies should be in discussion with stakeholders, pre-announced and gradual to allow companies adequate time to adjust.
"Changes and especially drastic changes with significant impact on business cost and sustainability must not be made overnight," he added.
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