Issues of Foreign Workers Policy in Malaysia Manufacturing Industry

Introduction On March 7, 2011 The Star, we agnize that our Malaysia government had decided to recruit more than overseas role players from India which around 45,000 people from India. This is to meet the deal by around 13 sectors which currently in shortage of workforce. So, this resulted in many people and The Malayan covers heart Congress (MTUC) had strongly unconnected the decisions made by government. The Malayan Trade Union Congress (MTUC) is said as the most spokesperson workers organization in Malaysia.Three main objectives emphasized by MTUC first is to get along the engross of its affiliate couplers in order to emend the workers economic and hearty conditions. Second is to ensure the policies be developed and action been interpreted towards father sure that full employment and setting a minimum wage, a legal maximum working period per week which is 44 hours and served as a training centres for workers. Thirdly, build a Social Security measures that subm it retirements benefits, as well as protection against sickness, unemployment, injury, and old age.Overall, MTUC was served to protecting the workers interest or fight for them. harmonize to Nagiah Ramasamy (2008), our Malaysia trading union movement is face many challenges, which be from neoliberal policies and the changing structures of employment. Due to the strict requirements of the Trade Union Act 1959, Malaysia union ar normally small staccato and regional. But, they still protest the decision of recruiting more orthogonal workers from India which might psychic trauma our local workers benefit.Some local workers argon in like manner picky on put-on selection and they dont want to work unless at that place is soaring salary, benefit or bonus waiting for them. So, attitude towards the job is their main enigma. So, the employers forced to retrenched the local workers and recruiting the strange workers by popsourcing or others way. The objectives of this assignment be to figure out the problems facing by Trade Unions in Malaysia on migratory and home(prenominal) workers. Furthermore, we excessively know that the impacts of the impertinent workers indemnity in manufacturing indus shew.In this assignment, we have a more mind on extraneous workers form _or_ system of government as well as the ways to overcome it in future day trend. Literature Review According to A. Navamukundan (n. d. ), employers be cost-conscious and choose workers who ar non only inexpensive hardly also have the necessary skills and agree with strict discipline and hard work. The preference impart be for immigrant overseas workers, who testament accept both lower wages and worse price and conditions of employment, as their primary objective is to earn as much cash as possible within a short span of time.Those argon the reason why the population of immigrant overseas workers are increasing age by years. A field of force do by Philip S. Robertson Jr (n . d) stated that the Malayan Government does not have a comprehensive legal and policy framework to regulate the enlisting, admission, placement, treatment, and repatriation of migrant workers. Oversight of migrant workers is divided among ministries, and yet within ministries, between various departments. because, remote worker depose considerably mig consider to our bucolic to find a job which offers them the salary that is higher(prenominal) than their own countries.This has become a threat to the local workers. Nagiah Ramasamy (n. d) proposed that the challenge for union leaders is to build a union movement that back tooth react loadively to the threats and opportunities that it faces with the growing influence of MNCs and the growing itemises of bilateral swap agreements. Trade unions erect help in improving occupational wellness and safety, decent work and social dialogue with government and employers. It is so unequivocal that trade union play an grievous role in rubbish for local workers right. A pick up presented by U. S.Department of c axerophtholaign stated the Government of Malaysia revised its policy on foreign workers so that priority would be given to Malaysians seeking employment delinquent to the creative activity economic slow heap and increased unemployment in 2001. The Government has limited put down workers to a three year stay and is cracking down on unregistered foreign workers, with new amendments to the in-migration Act calling for tart penalties. According to Kgaogelo Elizabeth Mokoka (2007), most South African nurses immigrate to destinations such as UK, Saudi Arabia, New Zealand, Australia and the USA (Xaba &amp Phillips 2001).In a study commissioned by the World Health Organisation (WHO), Buchan et al (2003) set two groups of countries in terms of nurse emigration and mobility. Destination countries are those to which nurse are drawn, plot of ground source countries are those that nurse are drawn from. D estination countries include five countries, namely Australia, Ireland, Norway, the UK and the USA. According to Mr. Ajit Singh Jessy from the Penang charitable Resources committee, salary remains as one of, or the most, important instrument in the retention of workers.As such, the complaints of local workers regarding wage trains are not baseless, especially when it comes to menial forms of labor movement. What may be baseless is the argument that locals shun these jobs which then have to be farmed out to foreign advertiseers. According to Cecilia Kok (2011), for South and selenium Asian economies, especially those that are lagging behind Malaysia, many migrant workers perceive a land flowing with milk and honey. Official information show that Malaysia attracts a huge bout of migrant workers into the expanse.According to official record, the number quadrupled from less than 500,000 in 1999 to more than two million, representing about 17% of the countrys workforce in 2008. Vijayakumari Kanapathy (2006) proposed that foreign workers in large numbers were seen as a security threat as the rising crime rate and incidence of highly contagious diseases were associated with them. Such popular perception was compounded by the belief among policy makers that heavy reliance on low-skilled foreign labor will trap the economy in low-wage low-skill equilibrium and slow down the much-warranted economic transformation into high-skilled activities.According to the International Organization for Migration (n. d. ), there are rough 2,109,954 migrant workers currently working in Malaysia, 50 per cent are Indonesian labour migrants, indicating the scale of Indonesian labour migration to Malaysia. The majority of labour migrants arriving in Malaysia originate from other South and Southeast Asian countries, principally attracted by the higher salaries that are covered in Malaysia analyzed with their countries of origin.A study done by FEDERATION OF MALAYSIAN MANUFACTU RERS (2010) stated that Manufacturing companies are currently reportage an increase in orders. However, many are facing embarrassingies accepting and ful pick outing orders due to a shortage of workers. Some have to turn away orders while others are penalised for late delivery. There are also companies recording losings beca use of goods and services they have not been able to fulfill orders. Development of the Issues Important of Manufacturing pains and Contribution to gross domestic product The earthy Domestic Product (GDP) of Malaysia is depends on its artless ector, manufacturing industries and the service sectors. Purchasing magnate parity (PPP) is a theory which states that fill in rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries. This means that the exchange rate between two countries should mate the ratio of the two countries price level of a fixed basket of goods and services. In 2008, the agricultural sector had contributed 9. 7 % towards the countrys GDP. The contributions of the manufacturing industries were estimated as 44. % and that of service sector was 45. 7 % towards the countrys GDP. As per the GDP- PPP, Malaysia is ranked 29th in the world. A GDP growth rate of 20 % was noticed towards the end of 20th century. The Gross Domestic Product nominal of Malaysia in 2009 was estimated as US$ 207,400 one thousand thousand in 2009 and that of GDP-PPP was estimated as $ 3. 9 billion. The GDP nominal per capita in 2009 was estimated at US $8,100. Analysis of challenges facing by Trade Union in Malaysia Number of foreign workers is growing-1. 6 million in 2005 to 1. million in 2010 (figure 1). According to Philip S. Robertson Jr. , Malaysians have a bad altitude of not volition to perform jobs that they consider as 3-D (dirty, difficult and dangerous), creating demand for foreign workers in sectors like plantations/agriculture, construction, manufacturing, and nearly service occ upations. The Malaysian Trades Union Congress said today it opposes strongly the proposed mass recruitment of 45,000 foreign workers be bring on it would edge out locals from the labour market. According to MTUC vice-president A.Balasubramaniam, a profound effect on the wages of Malaysians could be caused by such a well-favoured influx of foreigners and the governments high-income policy for them would be jeopardized too. Moreover, locals are organism deprived or discriminated if they are competing with foreign worker for the opportunity of universe chosen to work overtime gibe to Ministry of human Resources Malaysia. A study done by Syarisa Yanti Abubakar, from the short-term point of view of employers, migrant labour will only be hired only if doing so is more cost effective compared to other existing alternatives.Thats why locals are left behind because their cost of hiring is far higher than that of foreign worker. similarly that, check to Ministry of Human Resources Malay sia, more and more local workers are retrenched and replaced with foreign workers. This is resulted by the actions taken by many manufacturing companies of outsourcing foreign workers through close to agencies. Furthermore, altitude is another reason which cause the retrenchment of local workers such as thinking too highly on themselves, not willing to do those non-air conditioned job and so on.STATISTICS OF FOREIGN WORKER IN MALAYSIA Statistics PLKS by Citizenship and Sector, Feb 2010 (Source Immigration Department) STATISTICS OF FOREIGN WORKER IN MALAYSIA Statistics PLKS by Citizenship and Sector, Feb 2010 (Source Immigration Department) Figure 1 Implementation Various foreign worker policies are implemented by the to control the influx of illegal foreign workers. According to economic report 2004/2005, these include the unknown Worker Rationalisation design to legalise illegal workers, amendments to the Immigration Act, 1977 and imposition of an annual levy.In addition, sever al muniment of Understanding (MOUs) were signed with labour exporting countries to authorise legal recruitment of foreign workers. All of these had resulted the employers preference more towards foreign workers but not the locals and this preference has come along with three obvious activities harmonise to a study done by the Ministry of Human Resources Malaysia. The first is the number of the application on recruiting foreign workers is significantly increasing as we can know from a statistic that there are average 20,000 foreign workers canonical every month in Malaysia.Secondly, most of the employers are not victorious serious altitude in recruiting locals. Those applications from the employer mostly from manufacturing industry are bypassed while going through the ELX system to ensure the objective of recruiting foreign workers can be achieved. Lastly, large portion of foreign workers in Malaysia are use through the outsourcing companies to escape the quota limit. If the emp loyer directly hires foreign workers from source countries, they will be facing the quota limitation and therefore they hire the foreign workers through a third arty. Advantages According to Daniel Lee and Richard Ho (2011 Nov), many employers complain that their note activities will come to a dead stop if they forbid them to use foreign workers because the jobs in those sectors are perceived to be dirty, difficult and embarrassing to the average Malaysian. Therefore, they have to utilize foreign workers and sing praises of hiring such workers, purportedly of a labor category that is easy to utilize, simple to manage and that does not make demands for wages increases.Some local employers have voiced out in support for the hiring of foreign workers that many among them have threatened to blot out and relocate if their demands for low-cost foreign workers are unmet. As such, foreign workers fill up the empty space as they are not opposed to working in dirtier, more dicey conditions and longer hours for equal or lesser pay thereby keeping labor costs relatively low and helping to keep Malaysia competitive against other low-cost producing countries. They also serve as a buffer during times of recession as they help sustain.Disadvantages According to Ken CK (2002), the economic profit that gained from foreign workers has resulted in social costs and social problems, for example rising crimes, fraud, social deviance, wellness care costs and the transmission of communicable diseases including HIV/ aid. This is because their unsafe informal behavior through commercial sex, and casual homosexual and heterosexual activities. Furthermore, according to Syarisa Yanti Abubakar (2002), migrant labours will only be hired only if doing so is more cost effective compared to other existing alternatives.This will cause the locals are being deprived or discriminated if they are competing with foreign worker for the opportunity of being chosen to work overtime according to Min istry of Human Resources Malaysia. According to Ministry of Human Resources Malaysia, nowadays local workers are retrenched and replaced with foreign workers and this will resulted by the actions taken by many manufacturing companies of outsourcing foreign workers through some agencies.Altitude is also another reason which causes the retrenchment of local workers because they think too highly on themselves and not willing to do those 3D jobs (dirty, difficult and dangerous). Effects of Foreign Worker Migration to Manufacturing Industry According to Ministry of Human Resources Malaysia, there must be no discrimination in treatment by employer on local and foreign workers in respect of wages and terms and conditions of service. According to K George, the government has finally decided to extend equal treatment to foreign workers and also Human Resources Minister Dr.Fong Chan Onn announced that foreign workers employed in Malaysia would be treated equally in accordance of rights with the provisions of the International Labour Organisation (ILO) convention which Its function is to protect the rights and dignity of the working people all over the world. Recommendation Foreign worker indeed have contributed to the growth of economy, but too subject on this group of foreign workers to drive our economy cannot be birth out in long term as this may squeeze our country economy.To stop addiction of foreign worker in our country cannot be done away overnight as a abrupt repatriation of them can have a serious impact on the economy. Therefore a careful planning and cooperation from employer and government is needed. One of the ways to ensure employers lower down the foreign worker and shift to employ locals are by quotas system. Quotas of foreign employee can hired in one familiarity should be set by the government to stop them over relying to foreign worker and hire more local.Different quotas should be set differently according to the supply and demand because th e supply for local labour in sure(p) industry is low for example construction. Quotas should be raise for a certain period of time to minimize the impact to the industries. Government can shorten the make sense of foreign worker by increasing levy on foreign worker to a high amount where there are no cost saving benefits in employing foreign worker to gain the employer uses local worker. When the cost of hiring a foreign worker is higher compare to local worker, employer will choose to use local worker because they can save cost thus ill eventually increase the amount of skilled local worker in Malaysia which will increase the productiveness and move Malaysia into a high income country. Both employer and government play a big role in order to reduce the country dependence on foreign worker. Employer who over depend on cheap foreign worker should try to shift use local to increase the productivity in long term while government should implement break down regulation and enforce them to punish those employer which break the rules for using illegal immigrant in their firm and to prevent illegal immigrant to enter our country.Conclusion In conclusion, we had more understanding about foreign workers policy in Malaysia. Nevertheless, the foreign workers play an important role as one of the workforce in our country since cristal years. They bring their skills from their country and practice them at here. But, it also brings some problem and cases to us which even make our government headache. So, law enforcement should be taken serious, as we should treat the arrest and detention of undocumented migrant workers as an administrative offence, and not a criminal matter.These undocumented workers will accept our daily life, as they would commit crime or practice illegal activities in our country which make our government hard to tackle on them since we dont have their personal detail and document. So, enforcement on foreign works policy is vital. Besides that, ins tead we relying on foreign workforce, we know that it would be better for us to consider more on our domestic workers which can also have equivalent level of skills and performances.This also follows to our MTUC aim which suggested that giving priority to our local workers. Of course, our domestic workers also need to improve themselves, not matter on hard-skills or soft-skills we should upgrade our own knowledge and skills to fight in economy and global competition. It should be making cook that the interactions between governments are extremely important. The trade union leader should try to come out an agreement with the government on foreign workers policy which will benefit foreign workers and our Malaysian at the same time.If does, it will be the win-win situation between two country. References A. Navamukundan. (n. d. ) Labour migration in Malaysia trade union views. Daniel Lee and Richard Ho. (2011). Labour Shortage Issues Forum. Retrieved November 11, 2011, from www. seri . com. my http//www. seri. com. my/v3/index. php? option=com_content&ampview=article&ampid=169labour-shortage-issues-forum&ampcatid=38latestnews&ampItemid=54 Evelyn S. Devadason and Chan Wai Meng. (n. d. ).A Critical Appraisal of Policies and Laws Regulating migrator Workers in Malaysia. Ken CK. (2002). Male foreign migrant workers and HIV/AIDS in Malaysia risk environment, susceptability and implication for intervention. Retrieved November 3, 2011, from NLM Gateway http//gateway. nlm. nih. gov/MeetingAbstracts/ma? f=102259889. hypertext mark-up language Nagiah Ramasamy. (n. d) The Future of the Trade Union Movement in Malaysia. Tenaganita. (n. d. ) Outsourcing in dig or Trafficking in Migrant Labor?