Thursday, October 25, 2007

Foreign workers...

Recently media, especially TV3 highlighted on 'flooding' of foreign workers. At the same time focusing on 'Illegal Immigrants' or PATI (Pendatang Asing Tanpa Izin) here and there. More or less than 5000 of them stranded in KLIA while another almost 1000 run away from their employer in Johor (Muar) claimed was treated unfairly. Reported there are about 2.5 million of foreign workers in Malaysia, perhaps not including the PATIs. TV3 shown some e-mail suggesting or merely complaining on the situation. Most of them conveying their unsatisfactory toward what happened with their justification zooming on the welfare of foreign workers and fairness or unfairness in comparison to local workers.

As what our leaders usually trying to convince United States of America (USA) to look at the root cause of as per claimed 'Muslims Terrorism', i.e. due to Muslims being pressed in their own country such as Palestin, Iraq and Afghanistan - the same rule of thumb should applies in Malaysia, that is by finding root cause.

In Malaysia, there are high demand for blue colar workforce. The problem is that Malaysian interested in producing white colar workforce. So the supply and demand not being matched. As a result, we import foreign workers. Nowadays, parents want their children to become a doctor, engineer, accountant or lawyer. So who is going to works their rubber and oil palm trees? Yes, foreign workers.

When we look at the root cause, it is merely because of the pay working in plantation or agriculture area, constructions or other low pay work force. The pay that are very low with no PARKESO or EPF contribution, plus not to mentioned other fringe benefits. Who wants to works in fastfood restaurant for RM3.50 an hour with full of scolded by 'friendly and smiling Malaysian' and their employer?

So now, knowing that Malaysian need low pay work force, Foreigner who desperately need money come to Malaysia. These foreigner is 'immune' up to certain limit of being scolded or pressed by some employer. They willing to accept RM450 a month pay, by sharing with other 20 friends from the same country in RM600 per month rented house. Their objective is only to survive and to send some money to their beloved family from their originated country. They willing to accept the pay even they were no contribution for EPF nor medical benefit. Why are they willing to work knowing all these? Answer; for them, the pay is good enough rather than being unemployed in their low demand in workforce regardless blue or white colar area.

Contributing to that factors is that our Malaysian environment such as culture. Most foreign workers come from Indonesia because of the same religion, culture and food as per local Malay, while others form Indian sub-continent such as India, Bangladesh, Pakistan and Myanmar, have no diffuculties adopting the same Indian-Malaysia culture. Same goes for immigrant from China Mainland, Phillipines and Cambodia.

Looking at all these, we might start to wonder why all these continued to happen? Is there any policy or law governing this? I could answer that. However, I strongly suggest policy or law governing the blue colar workfoce be revised and improvised to attract local. System such as in Kingdom of Saudi Arabia should be set as example, where Foreign Workers can only be engaged once an employer register their company on crutial area where Foreign Workers are required. The company would then be assessed whether they capable or has adequate salary scheme, including medical/hospitalisation or other benefit. This at the same time reducing government's burden on foreign workers seeking medical treatment in government's hospital. Imposing strict policy on hiring foreign workers to employer such as 'undeductible tax', local quotas, and 'sponsored visa' that applies in Saudi Arabia would one of many good mechanism.

So far, we focusing on foreign workers existence in Malaysia. There are many other issues has yet been discussed such as the impact to local Malaysian in terms of 'fairness' and 'unfairness' such as non-taxed income of foreign workers although we are sharing the same public facilities. Malaysian being imposed higher cost for hospitalisation including introduction of compulsory medical insurance in 2008. As mentioned by one of e-mail sender to TV3 in Buletin Utama (could not recall his/her name) is the issue if the foreiger married with local. There will be a lot other issues in term or cultural or social issue, business or economic that could be explored further to help the government to formulate a practical policy or law governing the foreign workers issue.

Fact :

Why foreign workers are here?
  1. High demand on low pay work force
  2. High supply or cheap labour from 'poor' country
  3. Local are not willing to take 'low class' and lower paid jobs
  4. Environmental factors such as local culture almost the same like their originated country (Indo-China influence), Weather, food, religion etc
  5. Weakness in Malaysian Government's Policy

The good things:
  1. Fill-in high demand job area particularly in constructions, plantations, factory or home maid
  2. Contribution to business in term of increase number of consumer (example : Celcom promotion for call to Indonesia or bank charges for telegraphic transfer)
  3. Indirectly assist to increase GDP through their productions

Implications:
  1. Locals unemployment
  2. Social impact such as existence of new foreign community, new residential area, marriage etc
  3. Unbalanced wealth distribution among Malaysian and foreigner
  4. High demand on low cost consumable item leading push same priced product to be higher
  5. Outflow of MYR
  6. Contribute to push inflation rate

Solutions recommended:
  1. Revised current law and establishing control on import of foreign labour
  2. Making the 'dirty work' interesting to local as shown/promoted by Kementerian Pertanian & Industry Asas Tani plus imposing minimum criteria for employment
  3. Adopting high technology to reduce dependency on foreign workers

Still Learning Using this blog page.. sorry..

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