Government eases foreign worker policy for manufacturers


Deputy Home Minister Nur Jazlan Mohamed says manufacturing companies cannot expand their businesses without manpower. – The Malaysian Insight file pic, October 11, 2017.

EXPORT-ORIENTED manufacturers can now hire foreign workers to make up 100% of their production staff, Deputy Home Minister Nur Jazlan Mohamed has announced.

The move comes after the World Bank released a statement on Monday urging the government to review its migration policies to enjoy potential greater economic benefits from cheaper, lower-skilled migrant workers.

Nur Jazlan said priority would be given to manufacturing companies that export their products, but added that foreign workers can only be hired as low-level production workers, The Star reports.

He said the main problem faced by manufacturing companies was the lack of manpower needed to expand their business to meet the growing demand from international buyers.

The decision was made because Malaysians are not keen to work in production lines, he said, adding that the ratio of local to foreign workers in the manufacturing sector was currently 1:3.

In its report, the World Bank said its simulations showed a 10% net increase in low-skilled foreign workers raises the nation’s real gross domestic product by 1.1% as the workers kept salaries low, which, in turn, lowered prices and production costs, and boosted exports. – October 11, 2017.


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