Textile industry faces critical labour shortage, says MTMA

A shopper looking at headscarves in India Street yesterday. The street, which is lined with boutiques and textile stores, is expected to get busier in the coming days as Hari Raya approaches. - ZULAZHAR SHEBLEE / THE STAR

KUALA LUMPUR: The textile industry is facing a critical labour shortage which could affect investment flows into the industry if the issue is not addressed, says the Malaysian Textile Manufacturers Association (MTMA).

President Datuk Seri Tan Thian Poh said the need for labour was more urgent now as the industry’s revenue was expected to grow by at least 30% once the Trans-Pacific Partnership Agreement (TPPA) was enforced. 

“There are about 10,000 firms in the industry with a workforce of close to 100,000. If the TPPA is implemented, the industry needs to build its capacity over the next three years, requiring an additional 50,000 workers, and the shortage can create uncertainties in the market and hold back investments,” he said.

Tan was speaking to Bernama and TV3 on the sidelines of a three-day seminar themed Unboxing TPPA for Business Strategy for the Textile and Apparel Industry organised by the MTMA in Kuala Lumpur on Monday. 

He said the association had had several talks with related ministries on the issue and hoped the government would give the industry a special approval or to fast track the application process for hiring foreign workers.

Tan said at present, the ratio between foreign and local workers in the industry was 60:40 with the foreigners taking up lower-ranked jobs.

Meanwhile, Tan said MTMA, through its subsidiary the Malaysian Textile and Apparel Centre, was working closely with the International Trade and Industry Ministry to undertake a high-value added textile project related to innovation, complex product development and automation. 

The project, which aims to increase work efficiency and production by 50%, would not cause worker layoffs, he said.

In 2015, the textile and textile products industry contributed RM13.2bil or 1.7% to Malaysia’s total exports.

The US remains the leading export market for the industry, accounting for 18.3% of the industry’s total exports, highlighting how the industry will benefit from the TPPA, said Tan. - Bernama