PETALING JAYA: Indonesia’s decision to temporarily freeze the intake of workers will prolong the chronic labour shortage faced by all sectors of the economy, says Datuk Dr Syed Hussain Syed Husman.
The Malaysian Employers Federation president said efforts to bring back business operations to pre-pandemic levels will be hampered by the suspension.
“It is very critical that the government irons out any outstanding matters to ensure the smooth supply of foreign workers.”
He suggested that the government gives special approval to use labour available within the country.
“We can source for the labour from among refugees and paroled prisoners. With the special approval, these people can be deployed immediately to fill up the shortage until the new foreign workers arrive,” he said, adding that there are about 168,000 refugees holding UNHCR card with more than 60% of them potentially employable.
“Employers have endured a shortage of foreign workers for a long time,” he said in a statement yesterday.
“The supply of domestic workers from Indonesia is even more critical as they make up about 70% of all domestic maids in Malaysia.”
Businesses in the manufacturing sector are turning down new orders for fear of not being able to meet the deadlines, he said.
“Construction companies have had to bear penalties for late deliveries. Restaurants are being bombarded with complaints from customers for slow services and hotels are being criticised for not being able to check in guests on time as rooms are not ready. Plantation companies also suffered huge losses,” said Syed Hussain.
Federation of Malaysian Manufacturers (FMM) president Tan Sri Soh Thian Lai said it was mind boggling that the industry keeps experiencing inconsistencies arising from decisions by both countries.
“It is very difficult to comprehend what exactly is happening in the supply and demand model.
“Our economy is in dire need of labour and Indonesia can supply workers but there appears to be blocks or obstacles,” he said.
“There should be clear information on whether the suspension is temporary and only for certain sectors,” said Soh.
Citing the Electrical and Electronic (E&E) sector, he said there was a big demand for female Indonesian workers.
“Most Indonesian men are found in the construction and plantation sectors, but not in the manufacturing sector.
“The industry can only hope for some common sense to prevail and the impasse overcome,” he said.
