Wednesday, November 26, 2008

Reduce Dependence on Foreign Workers

There are a total of 10.9 million people in the Malaysian workforce. Of these 2.1 million workers are foreign workers, about 18% of the workforce. According to the statistic from Ministry of Home Affairs, about 70% are Indonesian, the rest from Bangladesh, Thailand, Philippines, Pakistan, Myammar and Nepal.
Foreign workers are widely employed in the Plantation (30%), Manufacturing (30%) , Construction (15%), Domestic Maid (15% ), Services (10%).

The number of foreign workers increasing dramatically from 750,000 to 2.1 million in the last 8 yrs. We cannot deny that foreign workers had contributed to Malaysian Economic Development. However the influx of foreign workers have created many social problems, from crime to diseases. If we include the number of illegal foreign workers plus the legal foreign workers, we are looking at about 2.6 million foreign workers in total. We have reached satuaration point often by convention that foreign workers should not be more than 10% of the population.
The economic slow down will have impact in Malaysia. Next year growth is forecast to be 3.5% and 2010 will be lower. Alot of establishment will be operating at undercapacity. There will be retrenchment and reduction in new jobs creation and unemployment rate will definitely go up.
Hence, the govement need to cutting set up a monitoring mechanism to:

1) Save jobs for Malaysians by cutting cost to save jobs or cut jobs to cut costs.
The government and private employer have social obligation to cut costs and save jobs. Any retrenchment should be foreign workers first rather than Malaysians.

2) Reduce the dependence of foreign worker. Malaysians should be given priority in job placement rather than foreign workers. The government have announced a reduction of 400,000 of foreign workers by 2010. There must be a mechanism to achieve this, otherwise is a tall order to achieve this target.

3) We need to fully utilised the 300 million announced under the stimulus package for training of workers.

a) Important to evaluate the nature of training required so that there is matching of skills and demands.
b) Matching of allowance since various skill training require different allowance.
c) Job conversion training eg. from clerk to retail sector.
d) Professional job conversion training then require longer period of training eg. becoming kindergarden teacher.
e) Retraining so that there is greater skill capability. Companies should use these downturn to up skill and retrain their executives.
f) Job placement for Malaysian retrenched from overseas. It is expected about 30,000 Malaysians in Singapore will be retrenched


KoZeK said...

I'm always appreciate the contribution of the forein worker to our nation's development, and I belief we need them for time to come but we should restrict them in certain industries.

To inform you, Dr. Chua. One of my friend who is a stationary supllier active in JB make a comment: as the year 2008 going to the end, most of the Kedai runcit shut down are belong to local resident,but a big number kedai runcit or 24 hour mini mart are opened by forein worker who are not suppose to involve in this industry. I ever brought up this issue to YB x 2 from Tebrau, and they said, nothing they can do about it.

According to my knowledge, most of our kedai runcit and mini mart within west Malaysia are slowly conquer by foreiner. It is not because we are not capable, but unfair competition. Forein worker are so much cheaper and they can work for longer hour, where as local worker's cost operation is much higher.

Unless our country's policy allowed them to involve in this industry, otherwise, someone got to do something to save our local and our tradional industry.

I sincery wish Dr. Chua your new mission could help us to overcome this threat, or we will permently wipe up for time to come.

Pearls said...

I take it as you are commenting about Professionals such as IT specialist, business development, accountants, architects, engineers. If yes, than I think you got a point. But if you are commenting on unskilled category.. think again.

Our local people are not keen to work dilligently as cleaners, maids, waitresses, kitchen help, etc.. They want to have high salaries, all sorts of benefits, off days like professionals, they dont want to do dirty jobs like cleaning the toilets, drains, etc, they deem such work demeaning AND last but not least.. they are unreliable! One day turn up, another 2 days dont turn up and dont even care to call!!

Yup, you can terminate them but hey, in the meantime, who is going to get things done until a new one comes along? We are talking about business here where such happenings can be very disruptive!!

On top of that, add up their salaries, benefits and duno what else, it will easily cost RM2K per month for a local unskilled worker who will give you hell. Dah lah, economy slowing down worldwide, over here, it might just die, the only fighting chance is to provide good service to stay afloat, some more gotta pay so much for a local who will TOH MAI (spill rice) ah!? CRAZY or what?

I should know... my indian national worker is a GEM! Don't cost much, do his job properly, willing to learn, happy with whatever that I can afford to reward him and most importantly, reliable and trustworthy! Never once did he dont turn up and dont call. If he cant make it, he will give me a missed call which I will call him back and he will tell me that he is not coming because he is sick.

So, you compare and see for yourself la.. I rather pay my indian national worker!

Johnny said...

Dr. Chua,

There is only one reason for employing foreign workers. Work people to death with very low pay. Hope they agreed that their children should not be employed because it is better to employ foreign workers!

Doc, you are doing a fine job in MCA. We are watching d arrogant president closely. He has the crown now but he will lose the kingdom.He does not own the Chinese. Carrying fighting for the Chinese.


Datuk Seri Dr. Chua Soi Lek yang dihormati
1)According to the post here "It is expected about 30,000 Malaysians in Singapore will be retrenched" but according to the report in local news paper it is 500,000
which one is correct.If it is 500,000 then corrective action need to be taken promptly

2)Figure are sometime misleading ,deceptive and not very reflective. Gross Domestic Product grow cannot be used as a sole criterial to measure the perfomance of a country .Other important factors such as full employment and social stability have to be considered

2)Figure and data in most of cases are also very useful .It is also important for us to know the breakdown of workers by industrial sectors .It is also important for us to know which job sectors are lacking of man power , which job sectors has excess of manpower.This is to enable job matching and retraining scheme to be more efficient.Hopefully this figure can be made available to training institute
and voluntarily organisation such as MCA , so that they can plan their job more efficiently.

3)In Malaysia many students do not choose the course of study according to their interest and inherit strength ,they just follow what their friend do .We need to strenghen career counciling service in Malaysia so that younger generation can plan their career properly.Many students enter into IT courses, enginnering course not because of interest because they think these are the prestige job, younger generation should be told of the good prospect of food cartering course , nursery course ,and other job sectors which are lacking of manpower

4)At this stage we may have to provide more assistance to graduates to take up post graduate to lessen the influx of workers.
By the time they completed their post graduate couse , the economic could have recovered.

5) We also have to be cautious and not be too restrict on the employment of foreign workers because foreign investment may not like this.
It is not easier to replace foreign worker with local except on the service sectors because local are choosy when applying for a job.It is not cheap to engage a foreign worker , five years ago one KOPITIAM TAUKE told me he paid RM1000 to his helper on top of that he also provide them with food and accomadation.Younger generation should be told of the good prospect of food cartering course , nursery course ,and other job sectors which are lacking of manpower

Darick said...

u r right ! we all r watching closely OTK how 'lan si' he is now after becoming President !
he'll definite has his down fall soon & it'll b very very soon & it'll worse then OKT !
keep d fire burning ! we'll gv u our full support.





Dato Chua yang dihormati

I would like to share with you all what I havd read about high employment rate among university graduate.

蘇巴瑪廉:大學生失業問題 忽略市場對人才需求所致

Mike said...

Dr Chua

I agreed with some of your point made. However to look even deeper into this worsening situations, I suspect there might be some political deliberation on the relaxation on the influx of foreign workers. If the government can be firmed on its policy and enforcement with cooperation from private sectors the impact could be minimized.

May I suggest you also comments on the following critical issues;

1) Why the Electrical tariff cannot be lower now despite global slump in petrol and commodity price ? Way back in June 08, TNB increased tariff and we were told due to high fuel price. Now they are telling us it was due to high coal price. Can you educate us on our actual national wide power generation cost?

2) Enforcement of back seat safety belt. OTK announced yesterday the forth-back seat passenger would be exempted. What is the logic and legal implication (in term of authority enforcement and insurance claim in the event of an accident).

Good day.

Vesu said...

dont forget Dr. many GLC hire professional foreign workers and they are paid a fat salary. this is the right time to act by replacing them with our malaysian professionals. the problem with foreign experts they dont really transfer their tech to us and claim always knew better than our locals...

Pearls said...


Eh, not everyone is heartless and abusive to their foreign workers la.

I don't abuse my foreign worker. I pay him the same rate as locals because he doesn't give me headache and I can trust him to get the job done properly. Of course, whenever it is his festive celeberation and time for him to go back, I give him some extra money as bonus, buy goodies for him and help him send some goodies home for his wife and kids to enjoy la.

So, you cannot say that the only reason why people want to employ foreign workers is to work them to death with low wages la. What la you!!

Johnny said...


You are right. I should add " with exception to the norm". My apology.


To YB Dato Dr.Chua Soi Lek
The dependence on foreign labour in the field of manufacturing and
construction perhaps can be lessened by adopting more factory
automation and construction automation( - .) I do not know whether the same approach can be applied to agricultar sectors. Can some one enlighten me on this.

An area which is short of manpower is property management to be more specific condominium management ,there are numbera of condominiums not well managed. I wonder the relevant ministry such as Human Resources ministry can use
the fund available to provide training on condominim management, factory automation and construction automation

CHARLIE KC said...

The entire Ball Games is all about Levy-Fee and Mouse-Rat-chase_kopiOduit for overstay migrants. If you add up the fee for 2 millions plus monthly Blackmailed money RM200/ per head, it is a BIG money spinners for all the hard working authorities.

But many people are paying for a hefty prices.
1. They conquer local business.
2. They form the new generations of migrant, they know money can bride their stay, or even RED IC.
3. SO hunting for fast and Big money subsequent cause Crimes and all kinds of social problems.
4. They conquer guarded apartment, condos and over crowded rental apartment, some up to 20 pax for a 900 Sq Ft aprtment. What and where is our Housing-local authority enforcement. Greedy landlord also charge by head per month. This had created Multiple problems for Condo and apartment social, health and utilities wear and tear problems. WOnder- Ong Ka CHaun is looking into this.
5. THey dirty our environment..Throwing rubbish from windows and had no regard to our cleaniness...
6. Disease and TV on the rise.
7. Screwing up our local girl, espciallyy bangla are NO-1 farker.

DO something , fast and rigidly. A country cannot have UN CONTROL and NON-Behave migrants...


Jason Wong said...

成也外劳, 败也外劳

1. 内政部允许外劳outsourcing companies to set up. The immigration officials and the outsourcing companies form a “win-win partnership” and allow unlimited number of foreign workers to enter Malaysia. The abundant supply of foreign workers creates a strong push factors. As a result, it is very easy for businesses to obtain foreign workers. Besides, there is absolutely no regulatory mechanism to contain the increase of foreign workers. Now they form one-third of our work forces.

2. In many cases, foreign workers outperform local workers. This keeps our production cost low to allow businesses to do well.

3. With plenty supply of foreign workers, there is no incentive for businesses to increase manpower upgrading investment. So, the wages for Malaysians remain low and their skills requirements do not receive improvement.

jason wong
mca (impian emas, skudai, johor)

NEIL said...

Dear Dr Chua,
For you now,the fight for MCA have not ended.OTK is a real dictator and those who vote him to power are fully responsible for what is happening now.You must take the bull by its horn.OTK not only wants to get rid of you,he also want to corner you and shame you.Fight the bastard with all your might and make sure he don't have any rest day.I for one,is a person who hate people been trample underneath.If you don't like a person tell him or her the reason and listen to his views.There must be give and takes.Very simple,OTK,if Dr Chua don't have the commanding support then how the hell on earth can be be elected by he people to be the deputy of MCA.You must respect the people's wish and a ministerial post MUST be given to him honourably.The president of MCA must process intelligence,composure,discipline and restraint.But OTK process non of these accept arrogance

NEIL said...

Dear OTK supporters,
The malaysian chinese today have put the blame solely on you all becos you have voted in a man who is not only unsuitable for the job of the President of MCA but also unsuitable to be called a chinese.He have failed from day one to be a leader.His job today is to get even with his enemies and Dr Chua is one of his punching bag.Been a leader he must be unite all factions and move on but instead he is creating faction.I blame no one but the voters who voted blindly to elect a 'Hitler' into MCA.

NEIL said...

Dear Ong Tee Keat,President of MCA,
I'm very disappointed with the way you lead MCA.Been a elected President of MCA ,you have failed to show any leadership qualities.You are ignorant of the needs of all the chinese community.Instead of getting down with your job of buildind a new MCA, you are engaged in a tit for tat action.You are persecuting those who didn't support your hand pick successor Ong Ka Chuan. Now if your are determine to create factions in MCA , we will hold you fully responsible for your unwarranted action.You will go down in MCA history as a man who not only persecuted the opponents but play dirty games and use devil tactics.I and the malaysia chinese hereby urgently urge you to put a stop t all this and get on with the job of mending the party and putting it back to good use.

NEIL said...

Dear Ong Tee Keat,President MCA,
OTK,lately ,after been elected to the President of MCA post,you are starting to show signs of arrogant.You seem to follow the footsteps of those former lapdogs leaders of MCA.Now with you daily internal tit for tat style with your deputy,I think you are slowly creating a rift in the party and that rift is getting worse each passing day.If you add fuel to this small fire that have been raging in the party,slowly and surely,this will turn into a big fire that will finally engulf MCA.You are on the collision course by not reconciling and giving Dr Chua a ministerial post.Time and time ,the chinese are seeing you ingniting the fire and not putting it out once and for all.As a person who is a leader,you must show grace and reconcilitary altitude.But you have non,OTK!
As for what Dr Chua says about Ketuanan Melayu,there is no such bloody thing .This phrase was been used by umno leaders to increase their extra grip on to the power.By shouting Ketuanan Melayu,these leaders knows very well that the malays will vote for them with the hope that the government will make them millionaires.All these are bull shit!.It's like MCA saying that if the chinese don't vote for OTK,the chinese will be chase out of this country and their citizenship canceled.What alot of crab!All these are BN propagandas which is used to achieve their selfish ambitions.

NEIL said...

Dr Chua,
I sincerely hope you won't deleted my comments as these comments are written with support from the chinese communities at large.Thanks!

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