The Malaysian government halts foreign worker visas, prompting concerns from the FMM and MEF about potential consequences for various industries.
The Malaysian government has temporarily frozen the approval of new visa applications for foreign workers, aiming to prioritize the employment of local workers and address the nation’s rising unemployment rate, which reached 4.2% in February 2023. However, this move has sparked concerns about its potential impact on the country’s productivity.
The Federation of Malaysian Manufacturers (FMM) has criticized the decision, with its President Soh Thian Lai describing it as “hasty.” Soh argues that the freeze will negatively affect productivity and business operations, and has urged the government to reconsider the decision, instead working closely with the private sector to address the unemployment issue more effectively.
According to FMM, the manufacturing sector is highly dependent on foreign workers, who constitute approximately 30% of the industry’s workforce. With the freeze in visa applications, businesses may face significant challenges in meeting production targets and maintaining operational efficiency.
The Malaysian Employers Federation (MEF) has also expressed concerns, with its Executive Director Datuk Shamsuddin Bardan warning that the decision could lead to a domino effect on other sectors reliant on foreign labor, such as construction and agriculture.
In response to these concerns, Human Resources Minister Datuk Seri M. Saravanan has clarified that the freeze only applies to new applications and will not affect existing approvals. Foreign workers with approved visas will still be allowed to enter and work in the country.
Minister Saravanan has assured the public that the government is closely monitoring the situation and will review the decision based on the labor market’s needs and the country’s economic performance. He emphasized that the priority remains to safeguard the interests of Malaysian workers and promote sustainable economic growth.
External Links:
- Govt freezes migrant worker applications until existing approvals hired
- Govt hasty in freezing foreign worker applications, says FMM
- Freezing of foreign workers’ applications will affect country’s productivity
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- Freezing approvals for foreign workers will affect productivity, govt told
- Govt hasty in freezing foreign worker applications, says FMM
- Freezing of foreign workers’ applications will affect the country’s productivity