Businesses frown on Malaysia's foreign workers ban

The Malaysian government has been asked to review its decision to suspend the intake of foreign workers as it will erode the country's competitive edge.

Penang Chinese Chamber of Commerce President Choot Ewe Seng said the hardest hit would be the construction, manufacturing, and service industries, which had become too dependent on foreign labours.

He said the government should consider how its latest decision would impact these industries.

Penang Master Builders & Building Materials Dealers Asso­ciation President Lim Kai Seng said there were more than 1 million foreign workers in the country, of which 30,000 were in Penang earning between US$355 to $592 per month.

"What will happen to them when their work permits expire…Will they be sent back or will their permits be renewed?

"This is not clear. If they cannot renew their permits and are sent back, it will be disastrous for the construction sector," Lim said.

Real Estate & Housing Developers' Association (Penang) Chairman Jerry Chan said it was too drastic a step as there would be an immediate reduction in the workers.

"It is better to legalise and regularise these workers.

"We have become too dependent on foreign workers and any sudden change in policy or enforcement will cause problems," he said.

Ideal Property Group executive chairman Alex Ooi said the move would impact negatively on the construction sector which was already facing a labour shortage.

"The move will impact severely on the progress of key infrastructure projects," he added.

In Johor Baru, Malaysia Entrepreneur Association President Chen Kim Hock said the Government's decision would cause many employers to fork out extra money to hire Malaysians to replace foreign workers.

He cited the construction sector where most contractors prefer to hire foreign workers as Malaysians would expect higher salary.

"If there are no more foreign workers, employers have no other way but to hire Malaysians. But they would have to fork out extra money to entice them," he added.

Chen, who is also the president of the Motorcycle and Scooter Sellers Group of Johor, said the impact of the government decision would be felt by the industries within a year.

He added that factories were also dependent on the foreign workers as Malaysians were not interested in such jobs due to the low income.

Jaya Catering Sdn Bhd Director J Dhinagaran urged the Government to lift the suspension, said that while restaurant operators were willing to pay higher wages to Malaysians the truth was they did not want to work in specific sectors unlike foreign workers.

"We are also disappointed with certain non-governmental organisations who are against the employment of foreign workers."

Indian Muslim Restaurant Owners Association's (Presma) President Noorul Hassan Saul Ham­eed said the decision to stop recruiting foreign workers was "made suddenly and it is too early to comment on the matter".

"Until the two-tier levy programme for foreign workers is reviewed and a comprehensive solution is created, we will wait and hope for a positive outcome," he said.

The Star/Asian News Network