An Interesting Thing About China

I learnt something interesting about China last couple of days. The country appears attracting high interests among Malaysians. May be because of the official visit by Prime Minister Najib to China since two days ago. Local newspapers seems give a wide coverage on this historic visit that had attracted 144 billions of ringgit worth of business deals between Malaysia and China.

Last week, I met a group of manufacturers led by its Chairman who came to my office to express their dilemma and difficulties in getting their factories running because of shortage of workers. They said, locals are very complicated to retain and not willing to work in dusty and dirty environment. Thus, they are left with no other options except for hiring foreign workers. However, their choices are limited although there are 15 source countries they can source from. I mean to recruit foreign workers. They said they can bring in foreigner from any one of these countries but they more prefer the workers from B country. One of the reasons was that the workers of the other 14 countries are costlier, more difficult to recruit and bla..bla..bla..which only them know better unlike the workers from B country.

That is not the interesting point that I intend to write about it here.

The shocking point is that China also will soon import foreign workers to meet their demand for labours!!! And "China has approached the government of country B for supplying work forces to China.", Said the Chairman of the group of manufacturers. "The Government must be fast to resolve this issue.", He chipped.

I said, "What? This can't be true!"

The Chairman further said that because of the China's One Child policy since last four decades, had caused labour supply constraints to their booming industrial expansion. Though, China's population is 1.3 billion, the most populous nation on earth, it cannot self fulfill their own labour needs.

He pointed out that, the policy has made Chinese people more educated, prefer to work for better jobs in a better place, higher salary, career advancement and so on. Their parents who have only one child to feed, surely will do everything for their son or daughter not to grow up and end up becomes just a general worker. The high expectation, pampering and concentration has been going on for three generations.

I didn't blink my eyes upon hearing this!

To me, it means, coming soon not only Malaysia, the other developed and developing countries will have to compete with China to lure low skilled foreign workers into the country. When the demand is higher than the price will go up.

So, you "pikir lah sendiri" what should we do. Continually depending in foreign workers or improving ourselves to do things differently, automation is inevitable. 

Another 'cepu emas' question is what the country B is?

IBS Can Reduce Over Dependence on Foreign Workers

Construction industry is among the highest employing foreign labours. The Works Ministry's initiative to promote IBS (Industrialised Building System), I welcome it. I am willing to make a proposal change in the policy related to my current job scope.

IBS will reduce the construction costs, cut over dependence on migrant workers, curb cash outflow amounting billions every year. A new supporting business sector will emerge. More entrepreneurs will be created to supply IBS' related products from concrete modules, concept designs, installation services to standard certification experts.

Therefore, a new set of construction regulations should be formulated. I acknowledge that it may take some times to fully implement it. But if there is a political will, the nation will sail to right direction.

Foreign Workers Into Malaysia, Malaysians Going Out for 3D Jobs

Kuala Lumpur, 14 October 2014 - Do you know that we are not only the receiving country for foreign workers i.e. from Bangladesh, Indonesia, Nepal, Myanmar, Vietnam etc. We are also the sending country of low skilled and skilled manpower especially and mainly to Singapore.

The article "Abuse, exploitation fail to stop blue-collar workers flocking to Singapore to cope with ringgit fall" has certainly disapproved what the employers claimed that locals are not willing to do low skilled, dirty, dangerous, difficult jobs.

Whatever it is, monetary factor is the main driving force. 

Ironically, Malaysians see Malaysia not attractive. But foreigners see Malaysia very attractive. 2.25 million legal foreign workers speaks itself.

Emmm maybe we can swap the country....will you?

-- Ripin Niknah

24 Hours Restaurants Contribute to Increase in Foreign Workers

11 June 2015

MAMAK Restaurant is always available and 24 hours open whenever you are hungry or need to find a place to hang out at night. Even during wee hours. Foods are limited though and mostly have "curry" flavours. Their service is fast if compared to other food and restaurant by industry standard. Their peculiar identity is that they are manned by mamak (you may refer to google dictionary for the meaning).

We Malaysians have mamak people. Although they are considered the minority but they are strong in business and better off economically. In recent years, we have been witnessing the popularity of 24 hours restaurants ballooning. Almost every place in big cities and towns through out Malaysia has a mamat restaurant.

While having 24 hours restaurants are convenient to the patrons, the excessive number of restaurants also bring about negative problems that partly contribute to the overall issues facing by the country. The perceived large number of foreign workers. Running a three shifts 24 hours restaurant, the need to maintain the image 'fast, efficient and curry taste' and a la carte service demand not a small number of workers. The restaurant operators are to make sure customers receive the service within seconds upon they enter the premise. It leaves the operators with no choice but to hire more people as food servers, or waiters and cooks (chef) as well as cleaners.

The major obstacle is that there is almost 'none' Malaysians are willing to work at mamak's restaurants. As a matter of fact, other categories of restaurants are also facing the same predicaments. 

Therefore, mamak restaurants opted for non-Malaysians. They have to keep the business running. It is a common knowledge that the majority of Malaysian mamak restaurants survive because of foreign workers. Their main source of foreign workers is from India. Some of them but very few getting people from Bangladesh, Sri Lanka, Pakistan and northern eastern part of Myanmar for reasons only known to them. 

Economically, Malaysia should not prohibit businesses from expanding. Businesses generate incomes, create employments. produce entrepreneurs and spin-off activities along its supply chains. However, the government must have a regulation in place to check the negative effects from business activities. We do not want the activities create another problems such as the presence of huge foreigners community in the country. 

Nevertheless, many people on the streets have a strong believe that mamak restaurants employ too many foreign workers. Their business model of 24 hours operation and full service oriented are the contributors to high demand for the workers. The situation seems unresolved effectively because the difficulties in getting locals to work due to long hours conditions, low pay, poor image perception by the public and the availability of jobs in other industries. The current local regulations also play the roles that contribute to the increase of new openings of mamak restaurants.

If we are serious in dealing with the influx of foreign workers in Malaysia, the government must be brave enough to formulate policies that are able to tackle the issue.

For example, having a place the law or regulation limiting the operation hours of food provider restaurants at certain places. We also may explore new guidelines that promotes self service operation as what we did to petrol service stations several years back then.

There must be a political will to institute the new laws but if it is for the good of the nation, why not we try it? Moreover, we Malaysians must keep a healthy lifestyle. Eating habit should follow healthy schedules. 'Lepak' at mamak restaurants during wee hours should be replaced with spending more times with family members at home and many more positive results could be harvested in the future.

It is just like whether we want to do it or we are lazy to do it!

Author: saupee

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