On 8 July 2022, EUROCHAM Malaysia attended a meeting organised by the Malaysian Ministry of International Trade and Industry (MITI) to discuss the employment of foreign workers in the manufacturing sector.
A constructive dialogue ensued between various business chambers and industry associations in accordance with three main agendas put forth:
- The 80:20 Ratio of Local Employees to Foreign Workers
MITI noted that Malaysia is in an economic recovery phase post-pandemic, and it is imperative to address certain labour market challenges.
The existing employment condition and implementation of the 80:20 ratio of local employees to foreign workers imposed by the government in the manufacturing sector may see slight changes and an official announcement can be expected in the coming weeks.
- Application Process for Foreign Workers under the Foreign Workers Centralised Management System (FWCMS)
In efforts of expediting the application process under the Foreign Workers Centralised Management System (FWCMS), MITI implores industry associations and business chambers to collect data on companies and the applications submitted through the FWCMS system, specifically: name of the company, number of foreign workers they have applied for, date of application submission, and indication if the dates for interviews have been given.
The data compilation is to be done by industry associations and business chambers, and individual submissions of affected companies would not be entertained. Based on the data collected, an impact assessment of the industry in terms of sales, production, export, and turnover is to be done by respective industry associations. Thereafter, the compiled data will be forwarded to the relevant agencies for further action as well.
Please fill in a questionnaire on the Application Details and Status of Foreign Workers through FWCMS here: https://forms.gle/rSk8TbuQp9AEBRqu7
We would truly appreciate your cooperation in filling out this form so we may communicate your concerns to MITI for further action.
- Public-private Collaboration: Medium to Long-term Measures to Address the Issue of Foreign Workers
With the objective of instating systematic policies and accordingly consultation with the industry players, MITI will be organising a one-day workshop for:
- Industry associations,
- Business chambers;
- Ministry of Human Resources (MOHR);
- Ministry of Domestic Trade and Consumer Affairs (KPDNHEP);
- Ministry of Education (MOE);
- Ministry of Higher Education (MOHE)
The outcome of the workshop, a position paper detailing concerns and critical discussions, will be presented to relevant entities to align interests and thereby, facilitate the requirements of industry stakeholders.
From the perspective of education, measures to improve the graduate employability of locals and vocational training from relevant industries may be proposed and pondered upon during the workshop as well.
MITI will announce details of the said workshop at a later time.
