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PETALING JAYA (THE STAR / ASIA NEWS NETWORK) – The sudden decision by the Malaysian authorities to impose a hefty fine of RM 50,000 (S $ 16,400) on employers for each foreign worker found in a crowded accommodation unit has caused a stir among industry players.
The Federation of Manufacturers of Malaysia (FMM) said that the Ministry of Human Resources had already given them the March deadline of next year to comply with Law 446 on Minimum Standards of Housing, Accommodation and Employee Services.
It was therefore a shock when Prime Minister Ismail Sabri Yaakob announced that the sanction would be imposed as of Thursday (November 26), in a measure to reduce the risk of transmission of Covid-19 among foreign workers housed in homes. crowded.
“Employers are making the necessary adjustments and are in the process of making the necessary changes to comply with the regulations,” said FMM President Tan Sri Soh Thian Lai.
“This sudden change in policy (to take punitive measures) appears to show a lack of communication between government agencies.”
He said employers needed time to make the necessary changes, including for renovations and applying for a permit to convert non-residential spaces into residential enclaves.
Shocked by the apparent widespread Covid-19 infections among thousands of migrant workers in Top Glove factories and dormitories in Selangor, Datuk Seri Ismail said the government will impose a hefty fine per worker starting Thursday unless employers provide accommodation. enhanced, including those that allow social distancing.
He also said that the government will conduct Covid-19 tests on 1.7 million foreign workers in the country. There are some two million registered foreign workers in Malaysia and another two million undocumented foreign immigrants.
Employers generally do not provide housing for legal migrant workers unless they work in factories or on construction sites.
Mr Soh said that FMM wrote to the Minister of Human Resources, M. Saravanan, in August, and met with him in early September to request a 12-month grace period for companies to make extensive adjustments following the requirements of the law before the authorities impose punitive sanctions. action.
FMM had obtained feedback from members across the country on the various challenges it faced.
He said many city and district councils weren’t prepared with standard guidelines and defined timelines to quickly approve applications that would allow the industry to increase or convert housing units for its workers. Some workers are housed in commercial plots.
“Converting commercial parcels into housing space would take time, especially with the additional cost incurred to renovate the area following the specifications outlined in the regulations, in addition to meeting other requirements of local authorities,” he said.
Malaysia Small and Medium Business Association President Michael Kang said authorities need to involve all stakeholders to first understand the underlying issues.
“Imposing such a hefty fine will only kill the industry,” he said.
“Mid-level companies said they could afford to provide better accommodation for foreign workers. But most cannot. And most employers could not comply with such a short notice,” said Datuk Kang.
The Executive Director of the Malaysian Employers’ Federation, Shamsuddin Bardan, said that many employers would “die” faster if the hefty fine of RM50,000 were imposed for each foreign worker staying in crowded units.
“It is a very expensive price to pay, especially given today’s challenges. Why burden employers with additional costs during such challenging times?”
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