KUALA LUMPUR (March 5): The National Chamber of Commerce and Industry of Malaysia (NCCIM) has urged the government to reassess the decision to bring forward deadlines for bringing in foreign workers into the country, to avoid disruption to recruitment plans by businesses.
The NCCIM’s appeal came after the Immigration Department's recent announcement of changes in the regulations on the management and intake of foreign workers. Among others, employers with an active quota for foreign workers are now required to bring these workers into the country by May 31, a shift from the previously set deadline of Sept 30.
The department will also cancel unused foreign worker quotas by March 31.
NCCIM president Tan Sri Soh Thian Lai said in a statement on Tuesday the abrupt cancellation poses a risk of causing substantial disruption to businesses, particularly in sectors that rely heavily on foreign labour, such as the manufacturing, construction, agriculture and plantation industries.
“There is a palpable concern among employers who have fulfilled their financial obligations by paying the levy, but are not able to receive the visa with reference by March 31, 2024. The lack of clarity on whether there will be a refund for these levies only adds to the growing uncertainty,” he said.
Soh said the decision places a “considerable strain” on businesses, leading to potential delays and disruptions in ongoing and upcoming projects due to the unavailability of foreign workers.
“The industry is also faced with the dilemma of what happens to workers scheduled to arrive after May 2024, leaving them in a precarious position without employment,” he said.
Soh said the rescheduling of the deadline to bring in foreign workers into the country by May 31 had created a sense of urgency, compelling employers to navigate through immigration processes that remain unclear.
“This sudden shift disrupts meticulously planned business operations, necessitating a rapid and often unfeasible adjustment,” he said.
Soh said the repercussions of these announcements extend beyond individual businesses, potentially impacting the broader economy and the country's ability to attract and retain foreign investment.
Therefore, he said the NCCIM proposes that the original deadline of Sept 30 be maintained to provide businesses with adequate time to comply with the regulations.
“Furthermore, we advocate for a consultative approach involving key industry stakeholders before the implementation of significant policy changes. This would ensure that any future quotas are aligned with the actual needs of various sectors, thereby mitigating potential disruptions.
“Looking ahead, the NCCIM is also seeking clarification on the government's plans beyond the deadline for the recruitment of foreign workers. Businesses must have a clear understanding of future regulations and policies to effectively plan and adapt their operations,” said Soh.
The NCCIM president said the chamber is committed to working collaboratively with the government to find a balanced solution that supports the growth and sustainability of businesses while meeting the regulatory requirements for managing foreign workers.
“We strongly believe that through constructive dialogue and cooperation, we can achieve outcomes that are beneficial for both the industry and the country,” he said.