PUTRAJAYA, Aug 11 — The average wage in the manufacturing sector rose to between RM650 and RM700 in the last three months from RM450, Labour Department director general Datuk Ismail Abdul Rahim disclosed today.
He hoped that with the increased wages and improved work conditions, more locals would be attracted to work in the manufacturing sector which currently employs 800,000 foreigners.
“More and more companies are accepting the government’s policy and are trying their best to reduce their dependence on foreign labour,” Ismail told Bernama.
The government is encouraging other sectors to follow suit to reduce the 2.2 million foreign worker population to 1.5 million by 2015, he said. He was confident the target would be met with the cooperation of employers and if locals were not too choosy about jobs.
Ismail said his department was now “very strict” with companies applying for foreign workers, requiring them to furnish proof that they had done their best to increase wages and improve work conditions for locals.
The government’s policy for employers to fully bear the foreign worker levy is another deterrent to employing foreigners, he said. Before this, the levy was paid upfront by employers and recovered through monthly deductions from the worker’s wage.
The Malaysian Employers Federation (MEF) said local companies were “ever ready” to co-operate with the government in providing work opportunities to Malaysians first.
MEF executive director Haji Shamsuddin Bardan said employers supported the government’s effort to increase the living standards of the workers by providing them higher wages. “We appreciate the government’s mission to move towards high income economy to improve the lot of the people and we are glad to be part of it.”
He said local companies should take the car manufacturer, Perodua Bhd, as an example, as it was one of the companies that employed mainly Malaysians. Malaysian Trade Union Congress (MTUC), while welcoming the increase in wages, said “this should be quickly applied to all other sectors.”
Vice-president A. Balasubramaniam said to sustain the momentum, the labour department should increase its enforcement activities to inspect factories and businesses under Section 65 of the Employment Act. — Bernama
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Strict enforcement is needed if we are to reduce dependency on foreign workers. Not self-regulation by employers!