SECURITY companies looking to cut costs are hiring Nepalis without the necessary work permits as guards.

Owners of these companies told The Malaysian Insight it is difficult to keep their business afloat as shopping centres and residential areas have less need of guards during a time of enforced shutdown.

There are about 800 security companies in Malaysia licensed by the Home Ministry.

Only Nepalis are allowed to work as foreign security personnel in Malaysia. They require special training and pay a higher levy than migrant workers in other sectors.

A retired air force member who runs a security company told The Malaysian Insight he has had to lay off half his workforce during the movement-control order period because of a drop in demand.

“Those of us who hire legal Nepali guards (with the necessary permits) are losing out. For example, during the MCO, shopping malls were closed and needed fewer guards.

“Half my workers were without jobs and yet I still had to pay for their shelter, food and salaries.

“To make matters worse, the use of illegal security guards is becoming more widespread. Clients prefer security companies which can provide guards with lower salaries.

“These guards are not trained and they don’t have clearance to become security personnel,” said the former serviceman who asked for anonymity.

Legal guards command much higher wages and pay a different levy to work here, he said.

“The levy for a legal security guard is RM2,000 while it is only RM700 if you come in to work in a different sector.

“The normal wage for a security guard is RM2,000 and this does not include other allowances, such as overtime.

“For illegal guards they get RM1,500 and below.”

Some security companies were employing Pakistanis and Indians as guards even before the MCO, he said.

Back then, he said, security companies which obeyed the laws could survive as there was consistent demand for security personnel.

“Now with the shops closed and the global economic uncertainty, many businesses are affected and everyone is trying to cut costs.

“As a legitimate security company, I am severely hit and many others are affected, too. How are we to pay salaries when the companies are not getting contracts?”

The owner of another security company felt the government is not doing enough to address the problem of unqualified guards.

“The problem of hiring illegal guards was already happening before the pandemic but many of us closed one eye because the economy was good,” he said.

“We have filed complaints with the Malaysia Security Industry Association (MSIA) but the body does not have executive power to act. The Home Ministry should be looking into this matter.”

Middlemen problem

MSIA president Ramli Yusuff told The Malaysian Insight there are more unqualified than qualified guards.  

Citing figures from the Home Ministry and Immigration Department, he said there are around 30,000 Nepalis in Malaysia permitted to work as guards.

However, he said, there are 20,000 to 40,000 uncertified guards in the Klang Valley alone.

Ramli said it is difficult for MSIA to monitor errant security companies and this is partly due to the role of middlemen recruiters.

“In some cases, the company itself does not know they are hiring illegally because of the middleman.

“The middleman provides guards to security companies without the company knowing they are illegal. The middleman wants profit and pays a lower salary to migrant workers without the necessary work permit,” said Ramli.

He said association members have reported that at least 200 guards will not be deployed.

“The figure could be higher,” he said.

Ramli agreed that the government has not paid enough attention to the problem of illegal guards.

“Priorities are wrong and enforcement is lacking. The government has to be serious and needs to get its priorities right.

“Go to the shopping malls and residential areas, you’ll be surprised,” Ramli added, urging people to pay attention to details such as the guards’ uniform.

A legitimate security guard wears a uniform with the company and the MSIA emblems stitched on the shirt. Illegal guards tend to wear only the MSIA emblem, he said.

Security fears

For Nepalis who are without work because of the MCO and reduced demand, time is running out for them to earn money before their work permits expire.

It is also a cost to responsible employers, who still provide accommodation, food and an allowance to the out-of-work guards.

A security company owner who said he continues to do this despite the lack of work said he’s not renewing the contracts of those whose permits are expiring soon.

“We just don’t know when the situation will get better.”

Besides the frustration at being undercut by companies using illegal guards, there are also safety concerns.

A Nepali guard, who gave his name Krishna, said illegal guards would run away or go into hiding if an incident occurred.

“They will be afraid to go to the police because they are illegals. But for legal guards like us, we will be able to give statements to the police,” said the 39-year old.

His colleague, Anat Pares, said legitimate guards are taught to handle different scenarios.

“We were taught how to deal with a burglary and the dos and don’ts during such an incident. I don’t think illegal guards are taught to handle such cases. They’ll just disappear if something happens.” – June 8, 2020.