According to the FMM-MIER Business Conditions Survey 2H2016 conducted by the Federation of Malaysian Manufacturers (FMM), 72% of the 370 FMM members polled said they were against the Employer Mandatory Commitment (EMC).
Deputy Prime Minister Ahmad Zahid Hamidi made the announcement about the EMC in December last year, saying the policy change would ensure that bosses were more responsible for their workers.
The policy change would prevent foreign workers from running away, changing sectors of work illegally, or overstaying and becoming illegal immigrants.
However, on Jan 11, the cabinet decided to defer the policy until 2018, following criticism by industries dependent on cheap foreign labour. Representatives said the move would increase business costs and result in price hikes for consumers.
In the FMM survey released on March 2, respondents appeared to agree, with almost three-quarters (74%) saying that the EMC would increase the cost of doing business.
Close to half (48%) expressed doubt that the policy’s objectives would be met, with only 11% confident that the EMC’s goals would be achieved.
Some 40% said this would cause locals to demand more benefits, while 39% were concerned over the discrimination of locals. Another 43% said the issue was more about illegal foreign workers and weak enforcement.
Almost 45% of respondents said the levy was currently borne by foreign workers, 17% said they paid for their foreign workers, and another 17% said they shared the cost.
About three in 10 respondents said the EMC should be implemented in stages with scheduled notifications.