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KUALA LUMPUR – Even with the government’s approval to bring in migrant labour, local businesses across the board are feeling the pinch of being unable to operate at full capacity, plainly due to a lack of manpower.
Business associations and federations approached by The Vibes were consistent in their views that holistic and effective solutions need to be thought out by the government to address both labour shortages and an overhang of out-of-contract migrant workers already here.
Malaysian Employers Federation (MEF) president Datuk Syed Hussain Syed Husman told The Vibes that while it appreciates the government’s efforts to solve the labour shortage conundrum while reducing dependency on migrant labour, actions must be timed properly.
Among the worst hit sectors, he said, are the plantation, construction, manufacturing, food and beverage, and hotel businesses, which have barely recovered from the effects of the Covid-19 pandemic.
He said losses for the palm oil industry alone topped RM30 billion purely due to being unable to harvest yield, asserting that the construction and manufacturing industries have lost out on other opportunities after falling behind on current projects when operating at a labour shortage of 40%.
Another issue highlighted by these groups was how locals shunned opportunities that involved laborious duties, preferring more executive settings in offices.
The government’s decision to reopen the economy provided employers with the motivation for recovery. The shortage of manpower in sectors shunned by locals was hindering such efforts.
“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,” Syed Hussain said.
The federation head in an earlier statement had also lamented the lengthy period required to bring in migrant labour, calling on the government to improve on the current period of six months from application to arrival.
Bumiputera Retailers Organisation president Datuk Ameer Ali Mydin questioned the government’s “lacklustre attitude” towards solving the problem, saying labour shortages have been a prolonged issue for years now.
Ameer observed how some businesses were forced to operate only at half capacity despite pandemic regulations, allowing businesses to run at full capacity.
“Employers have been telling the government this (problem) for the last two to three years about labour shortages and now we see even commodity prices, besides logistics, going up.
Now hit with the labour shortage, I do not know how long the Malaysian government expects businesses and the rakyat to survive,” he told The Vibes.
Ameer pointed out the recent decision to raise the minimum wage does not solve the labour problem, saying there is not enough manpower to take up the increased salaries.
He lamented how businesses looking forward to profiting from the Ramadan month were instead left disappointed, being faced with a lack of workers and further uncertainties.
Malaysian Federation of Hawkers and Petty Traders Association president Datuk Seri Rosli Sulaiman agreed with the need to import labour, but called on the government to first find a solution to the overhang of migrant labour already within the country.
According to Rosli, there are a number of migrant workers who have remained here after the end of their engagements, asserting there must first be a solution before more labour is brought in.
He suggested the government identify those overstaying to be reemployed in sectors in need of manpower to address the overpopulation of non-locals.
“Maybe we (should) offer those here to work in the plantation and manufacturing industries first, because if we bring in new manpower while not ensuring the ones already here are not sent back first, that will create many problems in the country,” he told The Vibes.
Automation: not an option?
The groups explained that due to its high costs and the niche nature of jobs, many have opted against the adoption of automation.
Ameer suggested how basic tasks for humans might seem challenging for robotics to imitate, further delaying their decision to automate.
It is not that we do not want to automate, but a lot of things cannot be automated; you cannot automate a robot to become a chef and cook for you. Do we want robots serving us?” he questioned.
MEF’s Syed Hussain pointed out the obvious factor of automation’s high costs being a hindrance, considering how most local businesses are small and medium enterprises (SMEs) unable to afford high initial investment.
He said this is especially evident when some micro-SMEs only have four staff, making automation not a viable option.
“Mechanisation and automation also necessitate the employment of highly skilled employees, which will lead to higher overall costs.
“With the high overall cost of mechanisation and automation, most of the micro-SMEs are not able to come up with the additional capital to invest in such expensive technologies,” he said. – The Vibes, April 11, 2022.
