Image credit: The Straits Times
PETALING JAYA: Work is being held up, productivity is down by up to 50% and companies are afraid to accept orders – as we enter the fourth quarter of the year, the workers shortage issue remains a Gordian knot that cannot be cut.
Although foreign workers are entering the country, business groups say it is “minimal”, far from the 1.5 million workers needed immediately.
Some two million workers had gone home due to the pandemic.
The lengthy recruitment process, where it takes up to two months before a conditional approval letter is issued, is not helping.
SME Association of Malaysia president Datuk Ding Hong Sing said the worker shortage is a very serious issue.
“It is true that foreign workers are slowly coming in but these are backlog cases for employers who have paid the levy before the pandemic and not new applications.
“SMEs need about 400 to 500 workers per company because we are not automated. We are afraid to take orders for fear we cannot meet them,” he said.
He said the crux of the problem is the issuance of the conditional approval letter by the Immigration Department’s Foreign Workers Central Management System (FWCMS) website.
“Very few of our members have received approval to receive foreign workers,” he said.
Yesterday, Human Resources Minister Datuk Seri M. Saravanan said the implementation of the amended Employment Act, which allows for a shorter work week, was postponed to next year to provide space for employers to address the issue of workers’ shortage.
He said employers might face issues if the amendments are implemented from Thursday as scheduled.
National Association of Human Resources Malaysia president Zarina Ismail said standard operating procedures for foreign workers’ entry are continuously changing, causing confusion among employers.
She said there should be no connection between the issue of foreign workers’ entry and the enforcement of the amendments in the Act.
“The most significant shortage of workers is in the agriculture and construction sectors,” she said.
Federation of Malaysian Manufacturers president Tan Sri Soh Thian Lai said the manufacturing and manufacturing-related services are in need of around 600,000 workers.
“With only 47,000 workers having come in – for all economic sectors – we believe the majority is still facing labour shortages.
“The shortage in the workforce will affect investment or expansion projects and also investors’ confidence,” he said.
Malaysian Muslim Restaurant Owners Association (Presma) president Datuk Jawahar Ali Taib Khan was one of the few who were not complaining.
He said some 20% of their members had received approvals to bring in foreign workers. “It (In the fourth quarter, the labour situation) will be better,” he said.
However, he added, employers are also facing “hiccups” while submitting applications through the FWCMS.
“It also takes about four to five hours for clearance at the Kuala Lumpur airport for foreign workers,” he said.
The restaurant industry relies heavily on foreign labour from India.
Source: https://www.thestar.com.my/news/nation/2022/08/30/long-wait-to-ease-shortage