10,000 Indian businesses at risk of closure, says group

 

The government had imposed a freeze on hiring foreigners for three sectors, including barbers. (Bernama pic)

The government had imposed a freeze on hiring foreigners for three sectors, including barbers. (Bernama pic)

KUALA LUMPUR: Around 10,000 Indian businesses from three sectors may be forced to cease operations as the visit passes for temporary employment (PLKS) for its remaining foreign workers will be terminated in stages, says an Indian commerce group.

N Gobalakrishnan, president of the Malaysian Associated Indian Chambers of Commerce and Industry (MAICCI) said the three sectors were goldsmiths, textiles and barbers.

The three sectors have not had sufficient foreign labour because of a freeze since 2009. Existing foreign workers, Gobalakrishnan said, have been on temporary employment passes which are renewed on a yearly basis.

“So with the new announcement, it is likely that these 10,000 businesses will close down in a matter of nine to 10 months,” he told a press conference here.

Gobalakrishnan said they had received a letter dated Feb 28 from the immigration department informing them that it would be terminating the passes for foreign workers.

In the letter sighted by FMT, it states that the last date to extend the passes is March 15 although the passes have not reached their maximum validity period of 13 years.

The letter also urged employers to ensure all foreign workers would be repatriated before the end of the validity period in 2024.

“They (the government) also don’t seem to understand the issue, or they are trying to say that these are not major sectors and cannot contribute much to the economy or the gross domestic product (GDP),” he said.

Gobalakrishnan also said MAICCI has repeatedly urged past governments to lift the freeze. The group represents more than 17,000 Indian businesses nationwide.

“The government’s justification to prioritise locals does not make sense because most of them these days are not interested or do not have the skills necessary to work in these sectors,” he said.

In January, human resources minister V Sivakumar said the government would study the need to expand employment approval for foreign workers to other sectors three months after the implementation of the Foreign Workers Employment Relaxation Plan.

Sivakumar said the plan currently covered manufacturing, construction, plantation, agriculture, and services (restaurants only) sectors and sub-sectors.

Home minister Saifuddin Nasution Ismail was previously reported as saying that the plan allowed employers to hire foreign workers from 15 source countries without having to meet quota requirements and employment eligibility prerequisites.

Saifuddin also said he would be leading a delegation comprising representatives from his ministry, the human resources ministry and regulatory agencies to the selected 15 source countries to discuss the safety and welfare aspects of foreign workers in this country. - FMT