(Kuala Lumpur, 11th) The President of the Malaysia-Taiwan Economic and Trade Association, Datuk Seri Chen Rongli, stated that hundreds of factories and restaurants in Malaysia are severely lacking foreign labor, causing companies to lose orders and the food and beverage industry to struggle to operate normally. Therefore, he questioned the government, asking when Malaysia will fully open foreign labor applications? How long do foreign investors have to wait before they can apply for foreign workers?
He issued a statement saying that Malaysia's foreign worker policy is inconsistent, with applications opening for two to three years and then being frozen for another two to three years. He questioned how new companies can hire employees during the frozen application period. Do they have to wait for the government to reopen foreign labor applications before they can operate?
He pointed out that many companies suffer from labor shortages, inadequate production line personnel, affecting production efficiency and output, leading them to reduce production or orders, and even consider leaving the Malaysian market. Some businesses in the food and beverage industry take risks by hiring illegal foreign workers, as they cannot operate otherwise, but they also face enforcement pressure.
He revealed that although the government has launched an illegal foreign worker amnesty plan, companies prefer hiring new employees. Furthermore, the quality of illegal foreign workers may not meet the needs of companies, especially in high-tech industries like electronics and chips. They have their own recruitment regulations and standards to meet product production requirements.
“Additionally, although the government encourages companies to switch to automation or use technological innovations to replace labor and reduce reliance on foreign workers, small and medium enterprises find it challenging to afford the high investment costs, leading to a polarization of industry competitiveness.”
Therefore, he urged the Prime Minister’s Department and the Ministry of Human Resources to address the foreign labor policy issue with the following eight recommendations:
1. Fully open foreign labor applications to all industries, especially manufacturing, construction, and plantation industries, to alleviate the current foreign labor shortage crisis.
2. Establish a one-stop center to handle foreign labor applications uniformly and formulate a sustainable and consistent foreign labor policy.
3. Simplify cross-industry flow policies for foreign workers, allowing companies to flexibly allocate foreign labor resources under qualifying conditions.
4. Accelerate the illegal foreign worker amnesty plan, legalize existing workforces, and strengthen enforcement against the black market labor trade.
5. Provide financial support to assist small and medium enterprises in automating and transforming to reduce long-term reliance on foreign labor.
6. Promote technical and vocational education (TVET), build technical colleges, and train local human resources and skilled workers.
7. Recognize and support Malaysian legal foreign worker human resource companies that are familiar with labor laws and can align with national investment policies to manage foreign labor matters.
8. Negotiate with foreign labor source countries to improve foreign worker welfare (such as the provident fund system), enhance Malaysia’s labor attractiveness, and avoid talent flowing to competing countries like the Middle East and Singapore.
“The flaws in Malaysia’s foreign labor policy severely restrict the country’s economic development. If the government does not promptly adjust policies, it will lead to foreign capital withdrawal and industry decline. Therefore, the Prime Minister’s Department should recognize the urgency of the issue and formulate a transparent and efficient foreign labor management system to ensure stable economic growth for the country.”
He issued a statement saying that Malaysia's foreign worker policy is inconsistent, with applications opening for two to three years and then being frozen for another two to three years. He questioned how new companies can hire employees during the frozen application period. Do they have to wait for the government to reopen foreign labor applications before they can operate?
He pointed out that many companies suffer from labor shortages, inadequate production line personnel, affecting production efficiency and output, leading them to reduce production or orders, and even consider leaving the Malaysian market. Some businesses in the food and beverage industry take risks by hiring illegal foreign workers, as they cannot operate otherwise, but they also face enforcement pressure.
He revealed that although the government has launched an illegal foreign worker amnesty plan, companies prefer hiring new employees. Furthermore, the quality of illegal foreign workers may not meet the needs of companies, especially in high-tech industries like electronics and chips. They have their own recruitment regulations and standards to meet product production requirements.
“Additionally, although the government encourages companies to switch to automation or use technological innovations to replace labor and reduce reliance on foreign workers, small and medium enterprises find it challenging to afford the high investment costs, leading to a polarization of industry competitiveness.”
Therefore, he urged the Prime Minister’s Department and the Ministry of Human Resources to address the foreign labor policy issue with the following eight recommendations:
1. Fully open foreign labor applications to all industries, especially manufacturing, construction, and plantation industries, to alleviate the current foreign labor shortage crisis.
2. Establish a one-stop center to handle foreign labor applications uniformly and formulate a sustainable and consistent foreign labor policy.
3. Simplify cross-industry flow policies for foreign workers, allowing companies to flexibly allocate foreign labor resources under qualifying conditions.
4. Accelerate the illegal foreign worker amnesty plan, legalize existing workforces, and strengthen enforcement against the black market labor trade.
5. Provide financial support to assist small and medium enterprises in automating and transforming to reduce long-term reliance on foreign labor.
6. Promote technical and vocational education (TVET), build technical colleges, and train local human resources and skilled workers.
7. Recognize and support Malaysian legal foreign worker human resource companies that are familiar with labor laws and can align with national investment policies to manage foreign labor matters.
8. Negotiate with foreign labor source countries to improve foreign worker welfare (such as the provident fund system), enhance Malaysia’s labor attractiveness, and avoid talent flowing to competing countries like the Middle East and Singapore.
“The flaws in Malaysia’s foreign labor policy severely restrict the country’s economic development. If the government does not promptly adjust policies, it will lead to foreign capital withdrawal and industry decline. Therefore, the Prime Minister’s Department should recognize the urgency of the issue and formulate a transparent and efficient foreign labor management system to ensure stable economic growth for the country.”