Putrajaya delays 80:20 employment ruling by 2 years

 

Manufacturing companies seeking to employ foreign workers have hit a snag in a 2016 ruling about having at least 80% Malaysians in their workforce. (Bernama pic)

PETALING JAYA: The government has agreed to defer by two years a condition that Malaysians form at least 80% of the workforce in manufacturing companies before the companies are allowed to employ foreign workers.

A senior official of the international trade and industry ministry said a letter on the decision will be issued next week.

Norazman Ayob, who is deputy secretary-general (industry), confirmed that he had met business representatives last week about their complaints, most of which were about foreign workers.

He said a letter would be sent next week to industry associations within the manufacturing sector on the decision to defer the 80:20 ratio requirement by two years.

Norazman Ayob.

Manufacturing companies have complained that recent applications to employ foreign workers had been held back because of the ruling, which is believed to have been made by the government in 2016.

FMT reported yesterday that 56 business associations had met Norazman about problems faced by Malaysian industries in the recruitment of migrant workers.

Some companies said it was near impossible to attract Malaysian workers to manufacturing companies, let alone keep them, especially at factories that are not air-conditioned.

Norazman said a list of companies and the number of foreign workers sought would be sent to the ministry in a week. “Miti will then send the list to the human resources ministry for action,” he added.

He said a workshop would be organised to formulate mid and long term measures on getting the right workforce for manufacturing companies.

“Proposed measures to elevate the level of automation especially amongst SMEs will also be discussed in the workshop,” he said. - FMT