PETALING JAYA: Any proposal to develop centralised, gated dormitories for foreign workers within or near industrial zones should be approached in a balanced and pragmatic manner, says the Malaysian Employers Federation (MEF).
Its president Datuk Dr Syed Hussain Syed Husman said well-regulated accommodation can improve worker safety and welfare, particularly where facilities comply with Act 446 (Workers’ Minimum Standards of Housing and Amenities).
“It will also ensure better health management, especially in preventing overcrowding and managing communicable diseases,” he said.
”When housing is located near workplaces, there will be transport efficiency and punctuality as well as regulatory compliance, as centralised facilities allow clearer oversight.”
He added that properly planned dormitories can reduce unsafe, ad hoc housing arrangements that have historically led to community friction.
But there must be emphasis on quality, compliance and human dignity, not merely containment, he said.
This is because, while gated centralisation may enhance security and monitoring, there is a legitimate concern that such models could unintentionally create social segregation, reinforce perceptions of exclusion and foster stigma against foreign workers, Syed Hussain pointed out.
“If poorly managed, this may actually increase social tension rather than reduce it, as housing policy should not appear to isolate foreign workers from broader society.
“Integration, community engagement and access to public amenities are equally important,” he said.
“The financial model must be carefully considered. If costs are disproportionately passed on to employers, especially MSMEs, it may increase operating expenses and reduce competitiveness.
“MEF is of the view that any such policy must be accompanied by clear cost-sharing frameworks, incentives or tax deductions for compliant employers and transitional timelines.
“Without these, compliance may become financially burdensome rather than sustainable. This is because success can be achieved if management standards are strictly enforced with clear accountability, established structures, existing coordination between local authorities, developers and employers, as well as availability of transparent grievance mechanisms for workers,” Syed Hussain added.
SME Association of Malaysia president Dr Chin Chee Seong said they strongly support a centralised accommodation facility for migrant workers within industrial zones.
Currently, he said, any such dormitories or those housing migrant workers must have a fence or they will not get approval from the Labour Department.
“Even if they got a block of commercial shop lots, there must be fencing on the road to cover the whole block. So the requirements already exist.
“And we also think that it’s very important for the safety of the local community because a lot of them are near the housing area,” he said.
He said the main issue was not the dormitories themselves, but that some industries, such as F&B, are scattered, so workers’ accommodation was either close to the area or on the premises.
This presented a problem that required a solution; as such, the government suggested building more of these dormitories within the cities or nearby areas with transportation.
Meanwhile, glove manufacturer Hartalega Holdings Bhd spokesperson said its commitment to safeguarding the well-being of its foreign employees in its Integrated Annual Report 2025, emphasising dignified living conditions.
The housing facilities provided exceed the Workers’ Minimum Standards of Housing and Amenities (Amendment) Act 2019 (Act 446) requirements under Malaysian law and align with ILO regulations.
In FY2025, Hartalega invested over RM2.5mil in its latest hostel at the Next Generation Integrated Glove Manufacturing Complex (NGC) 1.5 facility “to ensure our multi-purpose accommodation is well-equipped with comprehensive facilities and amenities that offer both functionality and comfort for our workers”.
“The accommodation, Hostel 1.5, goes beyond minimum requirements, providing improved accessibility with passenger lifts in every block, dedicated male and female recreation rooms and services, on-site amenities such as a coffee shop and grocery store offering affordable essentials, and a volleyball court to encourage physical activity and team building.
“We also introduced meaningful upgrades to our existing Hostel 1.0. These include the addition of two cafes offering convenient meal options for workers who prefer not to cook, each with televisions airing sports and leisure programmes.
“Furthermore, we invested RM153,000 to install window tinting throughout the hostel to reduce morning sunlight exposure and improve the sleep environment for night shift workers,” the report stated.
