Treat workers well or face US export ban, furniture makers warned


Khoo Gek San

Furniture factories face the prospect of capital outlay to provide accommodation for migrant workers, wary of the fate of glove makers, which have fallen foul of US regulations. – YouTube pic, July 20, 2021.

THE furniture industry must avoid repeating the mistakes of glove manufacturers and provide decent accommodation and welfare for their workers, Deputy Plantation Industries and Commodities Minister Wee Jeck Seng said.

According to Wee, the furniture industry would suffer if their main export markets – the United States and Europe – banned their products over evidence of forced labour, as had happened to Malaysian rubber glove manufacturers.

He said the furniture industry must ensure their foreign workers are not treated as slaves and should meet the Employees’ Minimum Standards of Accommodation and Amenities Act 1990 in building dormitories for migrant workers.

Malaysia’s furniture export orders have been on the rise year by year, with an increase in orders from the United States and Europe.

However, there are concerns that the growth of the export sales may be affected after a furniture factory was recently busted for not providing adequate housing for its workers.

“Foreign countries are paying attention to Malaysian news. Although glove manufacturing makes a lot of money, the employees’ dormitories were said to have not met the minimum standards,” Wee told The Malaysian Insight.

New regulations for act began on September 1 last year.

“After the act came into effect, furniture makers were discussing whether to build dorms for migrant workers, already enforced Singapore.

“The dormitory regulations for foreign workers have actually long existed, but there is no strict enforcement,” the Tg Piai MP said.

He said migrant workers must be provided dormitories that meet safety standards and benefits.

The Human Resources Ministry last year fined a furniture factory after 321 foreign workers were found “packed like sardines” at a hostel in Muar, Johor.

There were no beds in the hostel, it was crowded with no air circulation and there was only a small space for cooking. The employer was charged with violating the act in question.

Two of Malaysia’s top rubber glove manufacturers were previously banned from exporting their products to the United States after the US Customs and Border Protection accused them of using forced and indentured labour. This also included poor living conditions for their migrant workers.

The export value of Malaysia’s wooden furniture in 2020 was as high as RM10.6 billion.

The five major export markets are US (RM6.61 billion) and Japan (RM470 million), Australia (RM430 million), the European Union (RM400 million) and Singapore (RM310 million).

Two of Malaysia’s top rubber glove manufacturers were previously banned from exporting their products to the United States after the US Customs and Border Protection accused them of using forced and indentured labour. – The Malaysian Insight file pic, July 20, 2021.

Factories suffering from lockdowns

Wee also said that the furniture industry was facing a manpower shortage.

“The furniture industry is in urgent need of 20,000 migrant workers. During the Covid-19 pandemic, the factories also face the dilemma of suspension of operations,” he said.

The government announced a total lockdown from June 1 in an attempt to curb the high cases of Covid-19 and the restriction had curtailed the operation of furniture factories to catch up with the foreign orders.

Wee said that his ministry was advising the International Trade and Industry Ministry (Miti) to approve the furniture factories in the green zone to operate.

“The government can open states and regions in stages, allow businesses to operate under conditions and require businesses to comply with the standard operating procedure.

“So that we can continue to grow the economy and avoid increasing unemployment.”

He said that the increase in furniture orders was encouraging but the industry has repeatedly been restricted by the various lockdowns.

“If Malaysia loses these orders, foreign buyers may switch to other countries to buy furniture, and it will be even more difficult to get their orders again.

“Some factories in areas with low daily Covid confirmed cases have been implicated and continued to be prohibited from operating,” Wee said. – July 20, 2021.


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