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PETALING JAYA: A new government policy on foreign workers could result in US investment being diverted to Malaysia’s neighbors in Asean, the Malaysian Chamber of Commerce said today.
“This is a position that Malaysia may lose,” he said, and countries like Indonesia, Vietnam and Singapore benefit from welcoming US investment with open arms.
The chamber, known as Amcham, represents American business interests in Malaysia. His investment flight warning comes in the wake of a new government policy on November 1 that gives Malaysians preference over hiring foreign workers and expatriate staff.
Amcham urged the human resources ministry to reconsider. He said that US multinational companies had strong localization policies and many companies reported more than 90% local hires.
He said the size of Malaysia’s population provides a limited talent pool that needs “augmentation.” However, the new labor policy would affect investment decisions if talent mobility were even more limited.
“The movement and use of talent, including expatriates, is essential to operations,” Amcham said.
Citing data from the Malaysian Investment Development Authority, Amcham said that US companies invested RM28.63 billion in Malaysia last year.
