Gov't to relook into reliance on foreign labour - Mustapa

The government will relook into policies regarding the country's 2.3 million foreign labour, following various difficulties encountered by the group during the movement control order (MCO) to stop the spread of Covid-19, said Minister in the Prime Minister's Department (Economy), Mustapa Mohamed.

He said the number of foreign labour in the country could be controlled to create more job opportunities for locals.

"However, we are aware of the need for foreign labour in certain industries to meet economic demands," he said during RTM's Bicara Naratif programme on "Post Covid-19 Economic Recovery" last night.

Meanwhile, Mustapa said the reopening of certain economic sectors under the conditional MCO beginning today would prevent the economy from suffering a four-year reversal.

The economy, according to him, would remain in the same position as in 2016 with the per-capita income declining to US$9,000 compared to the present level of US$12,000 if no action was taken to revive the economy,

"The pandemic that hit Malaysia and the world is historic in the modern economy. Therefore, the opening of businesses is expected to curb the country's economic downturn," he said.

The conditional MCO also provided opportunities for the people to be employed and not rely on the Prihatin economic stimulus package (Prihatin), thus, increasing the purchasing power.

“We have flattened the Covid-19 transmission curve, but not yet fully. Health is still the priority.

"We are now entering the gradual resumption of the economy under a strict standard operating procedure but it needs high-level of discipline," he said.

The RM250 billion Prihatin economic stimulus package was announced by Prime Minister Muhyiddin Yassin on March 27 to ease the burden of the people and businesses affected by Covid-19 and the MCO.

Mustapa said there were companies, including multinationals in the textile sector, which announced that they would stop operating due to receiving less demand from developed countries.

Changes in business strategies including by small and medium-sized enterprises could result in job loss and unemployment.

"That is why wage subsidies are being improved to help employers protect jobs. But, we know, the recovery will not happen overnight," he said.

On April 6, the allocation for the wage subsidy programme announced via the Prihatin economic stimulus package was increased from RM5.9 billion to RM13.8 billion.

In the long term, the government is looking at industries that have the potential to compete as well as study new incentives to encourage foreign and local investment, Mustapa said.

Guarantees are also given to the implementation of infrastructure projects such as the East Coast Rail Project (ECRL) to enable it to become a "game-changer" in transforming the country's economic landscape.

"The 12th Malaysia Plan, as well as the Shared Prosperity Vision of 2030, will be given attention.

"Efforts to improve the people's standard of living continues, but (the improvement) will only happen if there is economic growth from now on," he said. - Bernama