FOREIGN workers can now be recruited from 15 source countries for the manufacturing, construction and service industries, but Putrajaya’s application requirements mean that they will not be arriving anytime soon, industry heads said.

The amount of documents to be submitted and compliance with the new standards for workers’ accommodation will slow down the recruitment process when many industries are struggling with manpower shortages, they said.

For the food production sector, 80% of farmers find it difficult to meet the new accommodation standards because of land issues, said Malaysia Federation of Vegetable Farmers’ Associations president Lim Ser Kwee.

“Farms operate on land which is leased from local governments and is used to cultivate short-term crops for two to three years or are on terrain that is too hilly and don’t meet the criteria for workers’ accommodations to be built.”

“The requirements for workers’ dormitories specified by the Human Resources Ministry is a big burden for farmers,” Lim said.

Some farms are in remote areas as well and he questioned how quickly the authorities would be able to set up electricity cables and piped water in order for staff quarters to be constructed.

“Farms may get approval from the local government to operate, but still cannot proceed because they are rejected by the human resources authority as they do not meet dormitory standards.”

To date, Lim said only 10% of vegetable farms have been successful in their applications for foreign workers, made since January. Many others are appealing.

Lim said some farms have submitted applications for 20 foreign workers but the number gets reduced by half, which is insufficient for a farm to operate efficiently. The number is reduced by the Home Ministry, he said.

“I worry that if the situation does not improve, the country will have fewer vegetable farmers and consumers will have to rely on imported vegetables,” he said, adding that in the last three years, vegetable farms have seen lower output by 20% to 30% due to lack of labourers.

“The government is only going after illegal foreign workers, but not filling the vacancies or need for workers on farms.”

Lim said vegetable farmers prefer workers from Nepal and Bangladesh.

The government’s move to allow recruitment of foreign workers from 15 countries, however, was aimed at getting employers to be less reliant on the commonly preferred source countries besides Nepal and Bangladesh, that also include the Philippines and Indonesia.

The other countries that make up the 15 are India, Thailand, Cambodia, Myanmar, Laos, Vietnam, Pakistan, Sri Lanka, Turkmenistan, Uzbekistan, and Kazakhstan.

The 15 countries were announced on July 18 at a joint press conference by Human Resources Minister M Saravanan and Home Minister Hamzah Zainuddin, following an inter-ministerial meeting to discuss current labour problems.

The shortage of workers has been ongoing since Putrajaya froze their recruitment during the Covid-19 pandemic. It has so far only allowed in batches of workers for limited sectors, such as plantations. New problems arose when Indonesia recently decided to temporarily freeze sending its citizens to work here over a dispute in the labour supply and recruitment agreement with Malaysia.

Small and Medium Enterprises (SME) Association president Ding Hong Sing said while the government is trying to make more foreign labour available to Malaysian employers, it also has to simplify the application process.

The process should be done online, without the need for intermediaries or third parties, he added.

There are at leat 30 types of documents an employer must submit when applying for foreign workers, Ding claimed.

“It is too complicated. The government should simplify the application process so that SMEs can hire foreign workers quickly.”

“How long will it take for foreign workers to come in? We appreciate the government’s efforts, but the workers are needed urgently.”

“We must be considerate of the difficulties faced by SMEs. Manufacturers also want to contribute to the country’s economic recovery,” said Ding, adding that most SMEs hire workers from Indonesia, Myanmar, Pakistan, Nepal and Bangladesh.

Federation of Malaysian Manufacturers (FMM) president Soh Thian Lai said the manufacturing sector and related services need around 600,000 workers to fill manpower gaps. Without them, companies will find it difficult to expand and take on more orders, he added.

“The government must quickly resolve the process of applying for foreign workers, as there are occasional delays in the application and interview process, as well as the process of importing foreign workers into the country.”

One sector managing well is furniture, with Malaysian Furniture Council President Khoo Yeow Chong expecting new foreign workers to arrive in early September.

“We are optimistic about the incoming batch of foreign workers. The accumulated orders can be completed and delivered to customers as soon as possible.”

The shortage of manpower has prevented furniture makers from fulfilling orders on time, and has resulted in delays for customers for as long as six or eight months, he said. – July 24, 2022.