SHORTAGE OF FOREIGN WORKERS CAUSING PROBLEMS, SAYS SMI ASSOCIATION CHIEF

By Amanina Mohamad Yusof

KUALA LUMPUR, Oct 13 (Bernama) -- The restriction on foreign workers has
caused disruption to certain small and medium enterprises in the furniture, food
and beverage sectors as well as manufacturing, says the SMI Association of
Malaysia.

Urging the government to address the situation, the association's National
President, Chua Tiam Wee, said the increase in levy on foreign workers have also
resulted in an increase in the cost of doing business.

Speaking to reporters here Wednesday, he said the government should offer an
alternative so that the dependency on foreign workers can be reduced within five
to 10 years rather than suddenly.

On the wish list of SMEs from the 2011 Budget, Chua said they were hoping
for more infrastructure projects to be implemented as this would help the SMEs
in the construction sector.

"We also hope big corporations, like government linked companies to
outsource more jobs to SMEs."

Chua also hoped that the government will gradually implement the goods and
services tax (GST) and at a three per cent rate instead of four per cent.

"Give at least two years for SMEs to prepare, to set up all the
infrastructure and at the same time there will be enough time for the government
to set up the advisory centre to help the SMEs to prepare the GST compliance,"
he added.

He also urged the government to increase the funding for SME Bank and SME
Corporation in order for them to give out more soft loans to SMEs.

"We hope the government to top-up RM3 billion (US$1=RM3.08) to the Working
Capital Guarantee Scheme as currently with RM7 billion fund, it has already been
fully used.

Earlier, Chua officiated the SME Financial Solution seminar, entitled,
"Optimizing Your Biz Potential Through Financial and Business Solutions".

The seminar, organised by Money Compass, was sponsored by Alliance Bank
Malaysia Bhd.

Meanwhile, Alliance Bank's Executive Vice President and Head of
SME Banking, Steven K. Miller said that the bank has recorded a 15 per cent
growth in loans for SMEs this year.

"As the bank, we see the SME market to be robust in the long term and in
giving out loans, the most important factor is who's running the business,"
Miller added.

--BERNAMA