THE low approval rate for migrant worker applications is driving employers up the wall as they struggle with post-epidemic economic recovery.

Business owners who spoke to The Malaysian Insight said they were baffled by the trickle of approvals from almost 500,000 applications.

They said, without manpower, they are struggling to revive their businesses after being hammered by the epidemic for two years.

Bumiputera Retailers Organisation president Ameer Ali Mydin said he had no idea what was going on.

“All sectors, retail, F&B, supermarket and hypermarket, we are all short of workers, by as much as 40%.

“All of us have applied for migrant workers and none of us received approval.

“Why is it taking so long? We don’t understand. More than 400,000 employers ask for workers but very few have received approval. Why is the government taking so much time?

“The government needs to wake up,” Ameer said, adding that increasing the minimum wage to RM1,500 won’t solve shortages because locals still turn their noses up at manual labour.

The managing director for Mydin Group said there are people willing to work in office jobs for RM1,500 but there are no vacancies.

He said his company had more than 50 vacancies for cashiers and warehouse workers but there are zero applications.

“When locals don’t want to do the work, we can’t push the horse to drink water. So, it is the government’s responsibility.

“If the government wants the people to be happy, for businesses and the country to prosper, approve enough migrant labour in all sectors, not just F&B and plantations.”

Ameer also pointed out that with the border reopening and screening measures no longer applicable, it shouldn’t take the government so long to process the applications.

He said the government should look into allowing workers with expired visas to return first.

There is also no reason for the government to limit the number of applications submitted, he said.

Human Resources Minister M. Saravanan said the ministry has received 475,678 applications for recruitment of migrant workers up to April 1.

He said the manufacturing sector (290,248 applications) was the most popular, followed by service (77,000), plantations (53,854), construction (43,519), agriculture (11,037), and mining and quarry (20).

Saravanan said the applications were currently being processed and to date the ministry had given approval for the recruitment of 2,605 workers in the manufacturing and plantation sectors.

The application window for recruitment opened on February 15.

Borrowing workers

Tony Khoo, president of the Perak real estate and housing developers’ association (Rehda) said shortage of workers in the construction sector has been a long standing problem.

Khoo said, while the government is calling for more affordable housing at a time when the price of raw materials have skyrocketed, it is not providing enough workers to the sector.

Meanwhile, new workers joining the sector require training, he said.

“The government wants to control the housing price and encourage us to build affordable homes but raw materials are expensive and developers are getting sued by homeowners for delays in completion.”

The government’s requirement for a centralised labour quarter in construction sites is also hard to fulfil for small developers, he said.

He said the government should give the sector a two-year grace period to fully recover, which can then be used to improve employee benefits.

“We are willing to abide by the regulations and calls by human rights organisations, but they have to be sympathetic to our predicament too.

“Construction sites fall under the purview of the Department of Occupational Safety and Health, as well as the Ministry of Works.

“Any non-compliance will see the site shut and a fine of RM50,000 to RM100,000 imposed. How are we going to survive?”

If the shortage continues, Khoo said they will have to borrow workers from other construction sites.

“We are now working with existing manpower. If we don’t have enough workers, we will borrow from others and hire them for higher salaries.

“We are not like the palm oil sector, which is profitable. We have no work but salaries have gone up to RM120 to RM160 per day.”

Saving the company first

Malaysian furniture council president Khoo Yeow Chong said they have not taken any new orders as existing orders have been delayed by six months to one year.

“As we have had to extend delivery dates, some customers turned to other manufacturers overseas.

“Large factories can still survive, but small businesses cannot keep going with the manpower shortage.

“We have orders, but we don’t have enough workers. We have advertised our vacancies for more than a year but no one has applied.”

Khoo’s factory initially employed 200 migrant workers, but now it has less than 40, putting a strain on delivery targets.

Khoo said employers are willing to build centralised living quarters for migrant workers but economic recovery must come first.

“All new requirements can be implemented slowly. We are not only facing a worker shortage, but increased costs of transport and raw materials are pushing the sector to the brink.”

Khoo said the furniture sector also has not met the requirement for industrial revolution 4.0. – April 13, 2022.