MEF: Use RM2b levy from foreigners to train locals

MEF: Use RM2b levy from foreigners to train locals

Shamsuddin Bardan says he is against the suggestion by a group of NGOs to have a Socso-like scheme and pension for foreign workers.

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KUALA LUMPUR:
The Malaysian Employers Federation (MEF) has shot down a recommendation to give the same benefits enjoyed by locals to foreign workers.

It said the RM2 billion levy collected yearly from foreign workers should be used to train locals, instead of on migrants.

MEF executive director Shamsuddin Bardan said the money should be utilised to train local workers improve their skills and productivity.

“The goal should be to reduce dependency on foreign workers gradually. We should upgrade the skills of our employees.

“Employers can then pay wages according to the upgraded skills and training.

“We should go along this line,” he told FMT when asked on a set of recommendations made by Migrant Workers’ Right to Redress Coalition (R2R), a local coalition of NGOs to improve the lives of foreign workers in Malaysia.

Some of the recommendations were to provide Social Security (Socso), a pension scheme, allow access to low medical charges (the same as enjoyed by locals), allow foreign workers to hold on to their passports and remove private recruitment agencies as middleman in hiring foreign workers.

Shamsuddin said it would not be right to extend the same treatment enjoyed by locals to foreign workers.

“We have our reservations in treating foreign workers the same as local workers. Obviously, foreign workers are here as our guest workers on a contract basis.

“They are meant to be employed for two to three years, depending on the terms and conditions (of their employment).”

Asked about foreign workers diagnosed with contagious diseases like tuberculosis and chronic illnesses, he said these workers should be deported to the home country immediately.

“We are against the current policy allowing those diagnosed with contagious diseases to appeal on the outcome of their medical check-up. That is shocking. The answer is clear — they should be deported.

“We should send the right message to foreign workers. You don’t receive medical treatment at the expense of the country.”

Shamsuddin said there were special insurance and medical cards to treat common illnesses of foreign workers and this practice should be continued.

The Federation of Manufacturers Malaysia website states that the “Foreign Worker Hospitalisation and Surgical Medical Insurance Scheme” provides coverage of up to RM10,000 to each foreign worker for treatment and hospitalisation in government hospitals.

It states the medical benefits would be consistent with a third class room and board, up to a maximum of RM60 per day, and would cover injuries, accidents and sickness.

The annual premium for each worker is RM120, excluding 6% service tax and RM10 stamp duty.

The annual premium is to be borne by the foreign worker (employee), except for the plantation industry and domestic maids, where the premiums are borne by the employer.

Shamsuddin also denied that employers were holding foreign workers’ passports by force. He said foreign workers had the right not to hand over their passports to employers by signing a document.

“Employers are hoping to manage the workers’ passports and for safe-keeping purposes.

“It is troublesome for employers operating out of the capital city. If lost, they will have to drive down with the worker to get a replacement. That takes three to four working days.”

However, he agreed with the coalition of NGOs, made up of North South Initiative, Persatuan Sahabat Wanita Selangor, Parti Sosialis Malaysia and Tenaganita, on removing recruitment agents as the middleman and allowing government-to-government agreements.

This is because, he said, the employer and the worker stands to save about 70% of the cost in hiring foreign workers.

“At the moment, it costs almost RM10,000 to bring in a Bangladeshi worker. But if it is a government-to-government arrangement, it will only cost RM3,000. It reduces cost; we support that.”

The government estimates there are four million undocumented workers and two million documented ones in the country.

Most of foreign workers are hired to do 3D jobs — dirty, dangerous and difficult positions — in plantations, construction, manufacturing and the food service industry.

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