KL palmoil firms seek review of work permits
KL palmoil firms seek review of work permits
Malaysia's palmoil industry has urged the government to review
a three-year cap on work permits for foreign labor, warning it
could cause a massive labor shortage, a report said Friday.
The industry faces the prospect of sending back 28,300 foreign
workers and suffering 1.05 billion ringgit (US$276 million) in
losses by the end of 2002 under the new ruling, the New Straits
Times said.
The government announced last week it has cut the permit
period for foreign workers to three years from six or seven years
to give job priority to locals amid an economic slowdown.
The new ruling took effect immediately for workers in all
sectors, except for domestic helpers.
The Malaysian Palm Oil Association warned that the industry,
already short staffed, would suffer its worst shortage of labor
if the ruling remained.
Association chief M.R. Chandran told the New Straits Times
that the industry would have to repatriate 11,300 foreign workers
by the end of this year and another 17,000 by the end of 2002.
Chandran said the industry was still short of 10,000 workers
this year and this would rise to 15,000 next year with the new
policy in place.
Losses under the new ruling were this year estimated at
380,000 ringgit, with another 1.05 billion ringgit expected next
year.
The association, which represents 96 palmoil companies, would
hand a memorandum to Deputy Premier and Home Minister Abdullah
Ahmad Badawi and three other ministers next week to seek at least
a year's grace to adhere to the abrupt policy change, he said.
Chandran said foreign workers should be allowed to work for at
least five years to enable them to repay recruiting agents fees
of about 800-1,000 ringgit each.
This would also allow employers to reduce operation costs by
spreading their recruitment fee of at least 1,400 ringgit per
worker over a longer period, he added.
Malaysia is the world's largest palmoil producer. The industry
in peninsula Malaysia employs some 108,000 workers, of which
about 40 percent are foreign workers.
The country is home to some 700,000 registered foreign workers
and hundreds of thousands of illegal immigrants, mainly from
neighboring Indonesia. -- AFP