KUALA LUMPUR – Putrajaya must act fast to solve the migrant labour shortage experienced by several industries to avoid stifling these businesses’ path to recovery from the Covid-19 pandemic, said the Malaysian Employers Federation (MEF).
MEF president Datuk Syed Hussain Syed Husman drew the government’s attention to numbers showing that only a meagre 0.55%, or 2,605 out of the 475,678 applications submitted by companies seeking migrant workers have been approved so far since applications opened in February.
He said these consisted of applications mostly from the manufacturing sector with 290,248 applications, followed by 77,000 from the services sector, 53,854 from the plantations sector, 43,519 applications seeking construction workers, 11,037 from the agricultural sector, and 20 from the mining and quarries industry.
“MEF is worried that the shortage of workers may even affect Malaysia’s GDP growth for 2022 projected at between 5.3% to 6.3% by Bank Negara Malaysia,” Syed Hussain wrote in a statement today.
He also related the concerns of business owners about being able to operate at full capacity, especially since the country has reopened its international borders.
“MEF supports the opening up of the economy and employers are eager to recover their businesses, but those in these sectors are frustrated at the scarcity of available workers.”
From a broader perspective, Syed Hussain said the government must expedite these applications to avoid falling behind other neighbouring countries, with potential clients possibly put off by the delay in services caused by lack of manpower.
He said those affected include palm oil industry players, which could suffer losses of up to RM30 billion; the construction sector, and the electrical and electronics industry, with the manufacturing sector on a whole facing a labour shortage of around 40%.
Also in the same boat, he said, are hotel and restaurant operators unable to service their clients due to worker shortages, resulting in businesses forced to downsize and close branches.
“The only reason is a shortage of workers. Some employers are going to the extent of pinching or poaching workers by enticing them with higher wages. Thus, a lot of workers are running away,” he said.
He then suggested the government also hold talks with source countries to regulate the rising recruitment fee, which he said can reach around RM7,000 plus RM4,200 on quarantine accommodation.
“Apart from the high costs that need to be reduced, MEF also hopes that the length of time taken for the migrant workers to arrive in Malaysia can be shortened,” he said.
Syed Hussain added that the normal process of applying for new migrant workers could take up to about six months before the migrant worker starts work.
“Employers need new workers urgently to assist in their recovery efforts and put their businesses on the right path,” he said. – The Vibes, April 6, 2022
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