Freezing our assets will only dampen the economy, say SMEs

PETALING JAYA: Malaysian employers have their side of the story to tell about illegal workers being hired in the industries.

Objecting to a move to freeze the assets of businesses that employ these workers, SME Association of Malaysia president Datuk Michael Kang said the move would dampen the economy.

It could lead to many businesses, especially the small and medium enterprises (SMEs), stopping operations, said Kang.

He acknowledged that the majority of SMEs hired illegal workers “because the cost of rehiring foreign workers is too high and the procedures too rigid”.

“Currently, 70% to 80% of SMEs have illegal workers because it is too expensive (not to do so) and there is no guarantee they will be supplied with legal workers,” he said.

Kong said there should be a proper system in place for the hiring of foreigners. The move by the Immi­gration Department to start freezing assets of employers in the industrial sector who hired or harboured illegal foreign workers beginning October was “a bad one”, he said.

There are roughly 650,000 SMEs nationwide.

Federation of Malaysian Manufac­turers president Datuk Seri Saw Choo Boon said the Government’s stand on foreign workers was hurting the industry.

While the situation about illegal foreign workers had to be addressed, he said it was only fair that the industry should not be overly restricted in its sourcing for foreign workers for its labour needs.

“Rules and procedures for hiring and work permit extensions should be simplified,” said Saw.

He urged the Government to clarify its position on hiring foreign workers and come out with firm, long-term policies.

“If not, there could be irreparable damage to the industry.”

Saw also said the programme to legalise illegal foreign workers had not been successful due to its stringent and costly procedures.

Malaysian Malay Businessmen and Industrialists Association president Datuk Moehamad Izat Emir said the Immigration Department’s latest move could affect the cash flow, which would lead to a financial disruption in the industry.

“While I support the department’s action, at the same time, there has to be a two-way traffic. If the industry expects the Immigration Department to be considerate, they must also be responsible,” he said.

Malaysian Associated Indian Chambers of Commerce and Indus­try president Tan Sri K. Kenneth Eswaran said the bottom line was for the Government to get their long-term policy right instead of penalising employers.

He said many businesses were already suffering from the freeze of foreign worker intake earlier this year.

And with the freezing of assets of those who hired and protected illegal foreign workers, life would be more difficult for businessmen, he added.