Tuesday, June 9, 2015

Eliminate Low Value Economic Sector To Reduce Demand for Foreign Workers

9 June 2015

The New Generations of youngsters are now less likely to work in sectors that are or perceived as difficult, dirty and dangerous (3D jobs). Directly, it affects the majority of business owners, employers and the industries whose find it almost impossible to sustain their businesses due to shortage of workers. Consequently, they opted to hire foreigners to fill the gaps. Whether the foreign workers are having a valid working permit or illegals is another serious concern of the country. To them, what matters most is the continuity of businesses. 

Several decades of times have been showing that employers who employ foreigners will continue their dependence on cheap foreign labours. They became less motivated to modernise the business processes from labour demanding to machinery's automation for a simple reason, it is cheap! It can be presumed that cheap foreign workers are equal as drugs. Once addicted, it will be difficult to get out of it.

However, to the nation and for majority of Malaysians, the presence of a large number of foreigners especially in the category of unskilled and low skilled workers has become a matter of concern. They feel unease, insecure, threaten and angry. The nation's economic competitiveness nosedived, social issues increased, international perceptions on human rights downgraded and the trends are not looking good.

The prolonged dependence on cheap foreign workers should not be left without solutions. Efforts must continue. Nevertheless, it must be acknowledged that there is no one size fits all in addressing the issue.

One of the suggestions that the government may consider is to look into the management of demand for foreign workers. The nation is moving towards becoming a developed country which economic indicators are part of the benchmarks. Technology drives productivity. Supply chain generates higher value added products. The economic growth moves in tandem with the increase in social well being of the people.

Thus, it is high time to have a policy to reduce and eventually to eliminate economic sectors that are considered low value, zero multiplier economic effects, no revenue generation to the government but heavily dependent on foreign labour resources. For example, scrap metal business, second hand clothes business, assembly of hazardous products etc.

By allowing these kind of businesses to operate and sprouting, it causes more negatives consequences than positives things it generates. For instance, the existence of scrap metal business has become a source of income through illegal ways by drug addicts and irresponsible parties. These problematic people have caused many theft cases taking place. They steal copper water meter, drain cover iron grille, motorcycles, bicycles, telecommunication cables, power transformers etc causing massive public vandalism. They then sell those stolen items to unethical scrap metal buyers for just a few cents per kilogram. Whereas, the cost of damage, repair and replacement are far more expensive. Moreover, the businesses are usually the eyesore to its surroundings. To make it more worst, these businesses do not attract locals to work but instead become the workplace for mostly the illegals foreign workers. (Note: scrap metal business has been categorised as a frozen sector which it is no longer allowed to hire foreign workers.)

At policy level on foreign workers management, the Government has imposed a freeze on certain business sectors such as scrap metals/items and second hand clothes (popularly known bundle business). However, it is obvious that there is no coordinated or streamlined policy at all level from federal, states until local governments. State or local authorities still issue permits to these types of business to operate. Hence, it is inevitable that the demand for foreign labours will continue to exist for a simple reason, no locals are interested to work there!

Dear policy makers...can you not think about this? Eliminate the source of demand, no more foreign workers come in.

Author: saupee, 2015


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