PETALING JAYA: As the chronic shortage of foreign workers in the country prolongs, the “pinching” of foreign workers by companies offering higher pay has worsened, say businesses and employers.

       They call for a resolution to the labour crunch as soon as possible, noting that the situation has hampered economic recovery.

       Kuala Lumpur and Selangor Chinese Chambers of Commerce and Industry president Datuk Ng Yih Pyng said many members, especially those in the manufacturing and plantation sectors, had raised concerns about their existing foreign workers being lured away with salaries that pay more than RM100 a day.

       “This is a big enticement (factor) and many foreign workers have switched companies although this is against the law.

       “Such counter-offers immediately make a legal foreign worker illegal, and the new employer will probably recalibrate the foreign worker’s status to make him legal again.

       “This is a very unhealthy chain that creates even more manpower issues and social problems,” he said in an interview yesterday.

       Going by the current minimum wage, a foreign worker is paid a monthly salary of between RM1,200 and RM1,600 for eight to 12 hours of work a day.

       With a weekly day off and no overtime, one earns between RM46 and RM61 a day.

       Although businesses had embarked on automation and technology, Ng said the process would take time.

       “Without workers, our output and export become reduced, affecting Malaysia as a leading exporting nation in the world,” he said.

       “This may lead to businesses, including the locally owned, relocating their factories elsewhere.”

       Calling for a solution to be found quickly, he said the government should be transparent about the progress and outcome of its discussions with the source nations of foreign workers.

       Malaysian Employers Federation (MEF) president Datuk Dr Syed Hussain Syed Husman pointed out that despite Malaysia’s 4.2% unemployment rate with more than 690,000 locals out of a job and the youth unemployment rate at 11%, employers in the plantation, construction and manufacturing sectors still face extreme difficulties in finding the required manpower.

       “While MEF supports efforts to reduce dependence on foreign workers in certain sectors, the government should address this complex matter on a sectoral basis, as many other sectors also depend on foreign labour.

       “Thus in the short term, it is critical for the government to finalise the mechanisms to bring in the required number of foreign workers to fill up the vacancies in jobs shunned by locals,” he said, adding that rebranding less favourable job positions could be an option.

       “For example, housemaids may be rebranded as house managers, who need to be certified and in charge of a few households instead of being employed by a particular household.

       “This will make the job more professional, allowing the worker to earn a higher income and attracting more locals.

       “Similarly, security guards can be rebranded as auxiliary police, cleaners as environmental assistants, janitors as hygiene associates, gardeners as landscape associates, bus drivers as bus captains and so on.

       “To secure the future, we need to find new ways to manage talent by shifting the focus to quality job creation and assisting workers to equip themselves through upskilling and reskilling,” he said.

       On the proposal to raise the minimum wage to RM1,500, both Syed Hussain and Ng urged to government to defer the move as businesses were still reeling from the economic shock and impact brought on by Covid-19 and the recent massive floods.

       Ng said more efforts should be directed to “mitigate inflation and control the rising costs of materials, products and services”.

       Syed Hussain said the survival and sustainability of small and medium enterprises was paramount when it came to cost and wages, as they make up 98% of Malaysian businesses.

       “Instead of increasing the minimum wage, the government should provide automation incentives to ensure the entire job market is not jeopardised by the new wage rates.

       “Currently employees are not keen to seek skill certification. So those at the lower end of the spectrum are generally paid the minimum wages,” he said.

       Both Ng and Syed Hussain also urged the government to revoke the electricity tariff surcharge of 3.7sen per kWh for non-domestic users for the February to June 2022 period, saying that any kind of increase in operating cost was another burden that would derail the recovery effort.