HIGH-INCOME ECONOMY STILL NEEDS LOWER-RUNG WORKERS, SAYS ASSOCIATION

By M. Saraswathi

KUALA LUMPUR, Sept 3 (Bernama) –- Malaysia will still need lower-rung workers
despite the government’s earnestness to strive for high-income economy, says
Malaysian Rubber Glove Manufacturers' Association.

“While we understand the government's earnestness to strive for high economy, we
cannot eliminate workers in the lower rung such as general workers, machine
operators and labourers,” said the association.

It said insufficient local labourers to work in factories is among the
challenges faced by rubber glove manufacturers as certain processes still need
to be done manually due to the gloves' fragility.

Hence, glove manufacturers have no other alternative but to resort to recruiting
foreign workers, despite government’s concern on the over dependence on foreign
workers, it said in its presentation at a dialogue session with the
International Trade and Industry Ministry Friday.

As Malaysians move up the value chain, there will always be a need to get
somebody to do menial work and this is where foreign labour is required to fill
the vacuum, especially when top 10 rubber glove companies in the country are
expected to reinvest RM7.29 billion for capital expenditure for the next 11
years, it said. (US$1=RM3.12)

It said the top six companies spent a cumulative RM1.08 billion capital
expenditure for the past four years.

“(Hence), any decision to fix a minimum wage has to be planned carefully as some
small-and medium-sized enterprises may face difficulty,” it said.

Foreign workers employed in the glove industry was only 2.8 per cent of the
total 1.8 million legal foreign workers in the country, it said.

Among others, the association also highlighted the consistent natural gas, water
and electricity supply as an important source to spur glove manufacturers.

"Therefore, it's the hope of manufacturers if and when the subsidy for natural
gas is removed eventually, it should be gradual and the rate reasonable.

“Glove manufacturers also need to know how natural gas price is fixed to enable
them to adjust their costing, and we are assured of sufficient additional and
long-term supply for expansion and future development,” it said.

The manufacturers also hoped water and electricity tarrifs will not be raised
suddenly and sharply.
-- BERNAMA