Govt mulls audit on repayment of migrant workers' recruitment fees - minister

The government is considering conducting an audit on the ongoing repayment of migrant workers' recruitment fees, triggered by allegations of labour exploitation in Malaysia's manufacturing industry.

Human Resources Minister M Saravanan (above) said a holistic approach is needed to avoid further international sanctions on major Malaysian exporters, the most recent being the US Customs and Border Protection's (CBP) import ban against rubber gloves from Top Glove.

"We need a holistic approach. We can't make a decision based on individual industries. We need a bit more time to look at the whole thing," said Saravanan.

He was speaking to reporters at the Top Glove head office in Setia Alam, Shah Alam, before a visit to its production facilities and workers' accommodations.

"Yes, definitely... otherwise these kinds of incidents will go on and on, we want to put it to rest. So, we will do an audit," he said when quizzed further on the government's commitment to audit the reimbursement process.

The amount owed to migrant workers comprise payments previously made to third-party agents involved in the recruitment process for job placement in various industries here.

Based on briefings by Top Glove's management today, the minister maintained that allegations of labour exploitation made against the world's largest rubber glove manufacturer were baseless.

Saravanan added that the ministry will be launching an "e-wages" system to provide better protection for workers, with details to be revealed later.

Top Glove executive chairperson Lim Wee Chai (above) said the company had since paid up to RM5 million in an ongoing remediation process involving some 10,000 migrant workers recruited prior to January last year.

"We are planning to pay in 12 instalments... to about 9,000 to 10,000 workers," Lim said, reiterating that the situation involved old recruitment payments made between five and 10 years ago.

"At that time, nobody talked about (problems with) recruitment fees. So (now) we are finding solutions.

"Everything we do must be win-win, good for the workers, good for the employers, good for the government, and good for the society," Lim added.

Top Glove previously estimated the outstanding amount to be paid stood at between RM20 million and RM50 million.

Throughout the years, Lim insisted that the company had done its part to provide job opportunities for migrant workers who were happy to be employed here.

"Of course, for some of the issues, we have to find solutions. Recruitment fees can be solved," he said.

The US CBP on July 30 confirmed that Top Glove had submitted information to prove the company did not use forced labour, 14 days after two of its subsidiaries were placed with a detention order.

International scrutiny on alleged labour exploitation in the rubber glove manufacturing supply chain, starting with the migrant workers' recruitment process, had prompted other major Malaysian glove makers to also start similar remediation schemes. - Mkini