ID :
114124
Tue, 03/30/2010 - 14:32
Auther :
Shortlink :
https://oananews.org//node/114124
The shortlink copeid
REFORMS TO CUT BACK ON EXCESSIVE UNSKILLED FOREIGN WORKERS
KUALA LUMPUR, March 30 (Bernama) -- Malaysia's excessive reliance on cheap
foreign labour runs counter to the national target of a high income economy and
the country's longer-term growth.
Signalling that the time for change has come, part one of the New Economic
Model unveiled by Prime Minister Najib Tun Razak Tuesday said the
number of foreign workers had increased due to the obsession by companies to
keep costs down to pursue short term profits.
"Government policies should work to correct the excessive use of foreign
labour in ways which would enhance Malaysia's longer-term growth objectives
rather than feed into the short-term cost considerations of firms," it said.
The NEM proposed two labour reforms, one to enforce equal labour standards
for local and foreign labour and the other, to use a levy system to achieve
targets for unskilled foreigners according to needs of particular sectors.
The reforms would also address international concerns of poor treatment of
foreign workers.
"A more rational system of levies and the utilisation of the proceeds to
fund social services for migrant workers would address equity concerns.
"In addition, funds could be used to finance programmes that drive
innovative practice among Malaysian firms, thus reinforcing pressure to move up
the value chain," the NEM added.
The NEM pointed to a World Bank finding of excessive and rising number of
low cost migrant workers in Malaysia against the declining number of expatriates
between 2000 and 2007.
Also, the big wage difference between Malaysia and the labour-originating
countries had led to huge profits for recruitment agencies and spawned a range
of abuses.
This included agents duping foreign workers into non-existent jobs.
The NEM said foreign workers cost less to hire because they are not
subjected to the same labour standards as Malaysians and they also have access
to social services like health, the cost of which was borne by the government.
Wage growth was also dampened because instead of paying for skilled labour,
many employers rely on unskilled foreigners to make profits from low value-added
products and services.
Before this, it was reported that Malaysia had 2.1 million registered
foreign workers in 2008 and as at Jan 2009, the number stood at 1.9 million.
-- BERNAMA
foreign labour runs counter to the national target of a high income economy and
the country's longer-term growth.
Signalling that the time for change has come, part one of the New Economic
Model unveiled by Prime Minister Najib Tun Razak Tuesday said the
number of foreign workers had increased due to the obsession by companies to
keep costs down to pursue short term profits.
"Government policies should work to correct the excessive use of foreign
labour in ways which would enhance Malaysia's longer-term growth objectives
rather than feed into the short-term cost considerations of firms," it said.
The NEM proposed two labour reforms, one to enforce equal labour standards
for local and foreign labour and the other, to use a levy system to achieve
targets for unskilled foreigners according to needs of particular sectors.
The reforms would also address international concerns of poor treatment of
foreign workers.
"A more rational system of levies and the utilisation of the proceeds to
fund social services for migrant workers would address equity concerns.
"In addition, funds could be used to finance programmes that drive
innovative practice among Malaysian firms, thus reinforcing pressure to move up
the value chain," the NEM added.
The NEM pointed to a World Bank finding of excessive and rising number of
low cost migrant workers in Malaysia against the declining number of expatriates
between 2000 and 2007.
Also, the big wage difference between Malaysia and the labour-originating
countries had led to huge profits for recruitment agencies and spawned a range
of abuses.
This included agents duping foreign workers into non-existent jobs.
The NEM said foreign workers cost less to hire because they are not
subjected to the same labour standards as Malaysians and they also have access
to social services like health, the cost of which was borne by the government.
Wage growth was also dampened because instead of paying for skilled labour,
many employers rely on unskilled foreigners to make profits from low value-added
products and services.
Before this, it was reported that Malaysia had 2.1 million registered
foreign workers in 2008 and as at Jan 2009, the number stood at 1.9 million.
-- BERNAMA
