KUALA LUMPUR (June 28): The Federation of Malaysian Manufacturers (FMM) is calling on the government to review its decision to extend indefinitely the blanket ban on foreign worker approvals that has been in place since March, saying approvals should be given to companies with strong justification for the need of workers and no outstanding quota approvals.

The economic organisation, which represents over 12,100 member companies from the manufacturing supply chain, made the statement on Wednesday (June 28), a day after Home Minister Datuk Seri Saifuddin Nasution Ismail was reported as saying that there was no need to lift the freeze.

“Why should we open for more hiring when the number that has already been approved is high?” Saifuddin was quoted as saying by The Star. The government, according to Saifuddin, had approved 1.8 million foreign workers via the Ministry of Human Resources and the Ministry of Home Affairs, though not all have been brought into the country.

FMM said the industry has been facing very challenging economic and business conditions of late, with slower external demand due to weakening global trade. At the same time, it noted that geopolitical tensions, elevated price pressures and tighter financial conditions continue to affect economic conditions globally and at home.

“This has affected sales and production and as a result, some industries with foreign worker quota in hand have had to re-strategise their foreign worker intake. Some have taken to bringing [in] the workers in batches to cater for the changing production needs, which have changed and dropped considerably versus the scenario when they had applied for the workers,” FMM president Tan Sri Datuk Soh Thian Lai said.

“Some industries have also postponed the timeline to bring in the workers, which is very much dependent on how fast the economic conditions improve. The industries are most definitely not deliberately delaying the mobilisation of the workers, as they have already locked in their levy payments,” Soh said.

On the other hand, Soh said some industries that are able to sustain production and are preparing for the peak season towards year-end, continue to need foreign workers.

“At the same time, the country continues to draw new investments into the country, some of which would still require some level of low-skilled manpower to cater to certain production processes. Extending the freeze in approvals indefinitely, would jeopardise their business operations,” Soh said.

On the issue of abandoned workers with no job placements upon arrival, Soh said the FMM has reiterated to the government on several occasions, the need to avoid outsourcing agents bringing in foreign workers, which contradict the current policy.

“The new policy allows companies in need of foreign workers in the five economic sectors directly and under the respective companies (to bring in foreign workers). It is high time [for] the government [to] take a very serious view and tighten the approval process, and allow only the ultimate employer to bring in foreign workers and not any other entities who may not be the real employer,” he added.

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