Carmelo Ferlito, who is the head of CME, an academic and educational initiative under the Institute for Democracy and Economic Affairs, said the rationale to introduce such a policy may be good but that it may backfire instead.
“Policymaking cannot be driven only by good intentions, a serious consideration of the negative unintended consequences is a must.
“While the measures aim to reduce unemployment among Malaysians, it presents important unintended consequences that may lead to reduce FDIs and MNCs presence in Malaysia, therefore increasing unemployment, rather than reducing it,” Ferlito said in a statement.
“(The procedures) apply not only to new positions but also to renewals of expatriate positions, making the future of foreigners in Malaysia increasingly uncertain, with the risk that Malaysia will be unable to attract foreign talents.”
He was responding to a statement by human resources minister M Saravanan on Monday where he said that effective Nov 1, employers who wish to hire foreign workers through a rehiring programme and apply for expatriate recruitment will first have to advertise the vacancies on the national employment portal MYFutureJobs.
The candidates will also be interviewed by representatives of employers and agencies of the ministry of human resources, namely the Social Security Organisation (Socso). Foreign workers or expatriates will only be considered if there are no Malaysians who are interested in applying for the position.
Ferlito said these measures interfere with employers’ decision process and imposes the presence of government representatives during the hiring process, which he said poses serious concerns in terms of privacy and business independence.
He proposed that dialogue sessions be held to allow relevant stakeholders, such as foreign chambers of commerce, to voice their concerns before such measures are implemented.
He also suggested that the government identify a salary threshold, such as RM15,000 per month, above which the new procedure will not be applicable and businesses would be free to hire without using the portal.
In addition, he proposed that work-permit renewals and business owners be excluded from the scope of the policy.
“CME recognises that in past decades Malaysia has done a wonderful job in attracting MNCs, thanks to a business-friendly institutional framework, certainty (with regard to) rule of law and attractive packages such as the Mida Principal Hub scheme.
“However, the most recent policies are putting at serious risk such great achievements,” Ferlito said.
Pointing out that Malaysia is playing in a “global scenario”, Ferlito stressed that the attraction of the best foreign talent and FDI is crucial, especially since neighbouring countries, such as Indonesia, are developing “very attractive” policies for FDIs.