A PILOT project to build a centralised labour quarters (CLQ) for manufacturing workers is in the works in Selangor, and those behind it hope it will be a solution to preventing epidemics like Covid-19 from happening again.  

The Covid-19 pandemic put a spotlight on the substandard living conditions of foreign workers, who are often cramped together in makeshift housing with inadequate sanitation and other facilities.

The authorities eventually became concerned about how migrant labourers, who had become indispensable to the economy, were being treated as Covid infections among them soared.

In Balakong, Selangor, a local factories’ association leader, Alan Hoh, recalled fielding calls every day from the Health Ministry and factory owners about Covid-19 outbreaks among foreign workers in 2020 and last year.

“There were Covid-19 infections everywhere and factories were not exempt,” the executive secretary of the Kampung Baru Balakong Industrial Area Landowners and Factory Operators Association (KPIB) said.

Hoh is a developer and has witnessed many factories being ordered to close, while many of their workers were trapped under enhanced movement-control orders or in quarantine after contracting Covid-19. 

Foreign workers, particularly those in the manufacturing sector, were largely blamed for the third Covid-19 wave last year, although the Federation of Malaysian Manufacturers said only 6% were linked to factories. 

As a result of the Covid-19 lockdowns, the Malaysian economy in 2020 contracted 5.6%, compared with 4.3% in 2019. The construction sector recorded the worst performance of -19.4%, followed by mining and quarrying (-10%), services (-5.5%), manufacturing (-2.2%) and agriculture (-2%).

Putrajaya then expanded the Employees’ Minimum Standards of Housing, Accommodation and Amenities Act 1990 to cover all workers in Malaysia. Previously, the law only covered workers in the plantation and mining sectors. 

It came into force in September 2020, but implementation was fraught with delays, as employers said they were unprepared to upgrade workers’ accommodation, while facing cash flow problems as a result of the pandemic.  

Hoh’s association said the grace period has been extended until the end of this year. 

Last year, as factories took the blame for Covid outbreaks, Hoh said the shutdowns and daily checks took such a toll that some KPIB members felt something had to be done. 

That was when KPIB president Pang Yoon Shin, Y5 Development Sdn Bhd project director Simon Ho and several other local businessmen decided to build a CLQ in Balakong to serve industries in the area.  

“We felt it was time for us to find a solution to foreign worker accommodation. And that’s when it was suggested that we build our own CLQ in Balakong,” said Pang.

“While it may not house all the foreign workers here, we hope that a CLQ will help us and the government monitor and have better control of foreign workers by housing them in one place.

“As it is, many foreign workers stay at different places such as rented houses, shoplots and some at construction sites or restaurants they work in,” said Pang. 

There had also been complaints from the local community about disruptions due to living with foreign workers.

According to Pang, there are about 250 factories with about 6,000 foreign workers in Balakong’s industrial area.   

Divided into eight areas, they are Seri Kembangan, Kampung Baru Balakong, Taming Jaya, Selesa Jaya, Balakong Jaya 1 and 2, Cheras Jaya and Balakong. The CLQ will serve factories and their workers in these areas.

Better living conditions

While it has taken a pandemic to motivate employers to improve foreign workers’ living conditions, Y5 Development’s Ho, a civil and structural engineer, said it’s not too late.

“The response has been good as more than 80% of the units have already been sold, with many of the purchasers being members of KPIB. 

“Singapore also upgraded their foreign worker accommodation following a surge in Covid-19 cases in 2020,” he said. 

KPIB’s CLQ in Balakong is the first in Selangor by the private sector. The first such project in the country is in Pasir Gudang, Johor, and was launched by Human Resources Minister M. Saravanan in December last year.

The minister announced then that more than 600 CLQs nationwide have been approved for construction, and will house more than 90,000 foreign workers.

For KPIB’s pilot CLQ, called Pusat Asrama Pekerja Asing, Selangor Menteri Besar Amirudin Shari launched the project in January this year.

Ho said the state government recognised the project’s importance.

“After the pandemic, everyone realised the importance of better housing for foreign workers and the state helped speed things up.” 

Construction will begin soon, once a social impact assessment report is finalised.

Ho said it is uncommon for local authorities to require a social impact assessment on projects, but in this case the Kajang Municipal Council wanted to be certain the local community would be in favour of a CLQ within their area.

Ho said that the single block of apartments, which is built on industrial land, will have 15 floors with 40 units per floor, and 15 lifts. 

“Each unit is 600 sq ft and with its own kitchen, bathroom, sprinkler system, among others. Although it’s a studio concept (with no walls), it can house six workers (using bunk beds). 

“Apart from that, the CLQ will have a separate building for facilities such as a clinic, canteen, convenience store, money transfer, multipurpose hall, laundry services and guard house. 

“The CLQ will cater to most of the workers’ needs so they don’t have to move around too much.” 

Ho said that the CLQ will have minimal parking spaces and will only cater to men for now. 

“We are thinking of a bus service that can take them to their workplaces but that will depend on the demand,” said Ho. 

Ho said the CLQ units are being sold to employers.

“This is a win-win situation for the employers as they can plan their costs and don’t have to constantly worry about their worker housing needs.” 

On the prospects of unit owners putting more than six workers in a unit, Ho said each worker living there will be given their own access cards. 

“We won’t allow the units to house more than the intended six. That would defeat the purpose,” he added.  

According to Ho, each of the 598 units is priced at RM168,000. 

“If this works, we hope it can be replicated in other industrial areas in Selangor,” said Ho. – May 27, 2022.