PETALING JAYA: The government's bid to boost local skilled labour in the construction sector to sustain the country's economy may not be feasible in the near future as such shift is fraught with many challenges, said Datuk Koong Lin Loong.
The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) treasurer-general said the change would not be possible in the short term as the construction industry is currently involved heavily in the development of various infrastructures in the country and are dependent on foreign workers.
He said it is insufficient to merely train locals for industries that are heavily reliant on a foreign workforce.
"Even when they are trained and skilled, they need to have on-the-job experience.
"What are the remunerations they can expect?
"Moreover, we have created an "ecosystem" where a certain job especially when it is 3D (dirty, dangerous, difficult) in nature is meant for foreign workers and Malaysians do not want to take it up.
"This mindset needs to change and only then can we make localising the workforce work," he told The Star.
Koong said while it was feasible to replace the foreign workforce with local workers in some sectors, there are certain jobs that Malaysians may never take up.
He said the manufacturing industry is among the sectors that can have its workforce fully replaced with skilled local workers.
Koong suggested that to encourage the hiring of locals, the government should offer incentives to employers such as wage subsidies.
"There must be a detailed masterplan prior to executing such goals to switch the foreigners for local workers.
"Incentives must be offered to employers otherwise they will just stick to foreigners who are cheaper and easier to hire," he said.
On Tuesday, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said the government will incur long-term losses if the construction sector continues to rely on foreign workers.
He urged construction companies to prioritise local skilled labour when hiring workers in the sector.
In June, Deputy Prime Minister Datuk Seri Fadillah Yusof had also urged the construction sector to reduce dependency on low-skilled foreign workers.
Malaysian Employers Federation president Datuk Dr Syed Hussain Syed Husman said the government's call to maximise local workforce in the construction sector is a goal that can possibly be achieved in the long term if the construction industry is prepared to invest in new technology, improve working conditions and adopt better safety and health practices
He said as locals are not keen to take up vacancies in the sector, employers in the construction industry rely on foreign workers
"Locals perceive the construction sector as a 3D job. Accidents on the construction site are a cause of concern and Malaysian workers are not prepared to take such risks.
"To attract more qualified locals to the construction industry there is a need to enhance the construction industry with mechanization, new building methods and technology.
"There is a crucial need to improve workplace safety and health practices, which will eventually boost the confidence of local workers to join the construction industry," Syed Hussain said.
He said the Construction Industry Development Board (CIDB) has introduced several initiatives to improve the image of the industry and raise awareness among local workers of the benefits of joining the construction industry, including improving incentive programs, technical and vocational education, raising wages to attract local workers, improving workplace conditions, safety and health practices.
However, he said a longer duration should be in place for the changes to be implemented.
On another matter of the government's vision to achieve its past Asian Tiger status, Syed Hussain said Malaysia is also on the right track to reclaim the status.
"To reclaim the Asian Tiger status, it is critical for Malaysia to maintain political stability. A series of changes of government and the Covid-19 pandemic had negatively impacted the country’s economy.
"Malaysia had seen stability in the past 21 months with the unity government helming the country. There is also a critical need to increase the percentage of skilled workforce in Malaysia.
"The percentage of skilled workforce is currently at about 28% but the percentage of skilled workforce needs to be increased closer to 50% to attain a stronger economy. The government is on the right track by implementing initiatives to upskill and reskill workers," he said.
Syed Hussain said although the government had implemented unpopular policy changes such as targeted diesel and electricity subsidies to achieve better economic growth, it was a neccessary move.
He said the government also needs to introduce some drastic measures to address the mounting national debt of about RM1.5 trillion.
"The government may need to review and restructure the total operating expenditure of RM311bil of which RM81bil went towards social assistance and subsidies. About 48% was spent on pensions, civil service remuneration and other liabilities.
"The government needs to spend more on infrastructure development that could attract more higher value-added businesses to spur growth of the economy," he said.
