Shaun Cheah, executive director of the Malaysian International Chamber of Commerce and Industry, said the government should try to be a placement agency for local workers in manufacturing.

“Only then will it understand how hard it is to fill those positions,” he said.

The government itself would then have to prove that it can fulfil an 80% quota of Malaysian workers rather than asking employers to do it, he said.

However, another business group leader said the 80:20 ratio of local to foreign workers should be abolished altogether.

“It is very difficult to find local workers. Many Malaysians do not want to work in dirty, dangerous and difficult jobs. Even after two years, the Malaysian population is not enough to find workers in these sectors,” said Anthony Ding, president of the SME Association of Malaysia.

The two leaders were responding to a recent statement that the government had decided to defer by two years a ruling that manufacturing companies could employ foreign workers only after 80% of their workforce were Malaysians.

Cheah said the 80:20 rule was “a great effort by Miti” (international trade and industry ministry) as companies would not face pressure to fulfil the quota.

But, he said, the government must solve the problem of attracting more Malaysian workers in manufacturing, and suggested that refugees and spouses of expatriates be allowed to seek employment.

“Those who are in detention centres should also be allowed to work in controlled facilities. This can save more money for the government as they already have accommodation,” he said.

He said a stable workforce was needed to overcome the effects of the Covid-19 pandemic.

Ding said the government should give priority to automation, by providing SMEs with machines and financial support through incentives.

Such a move would attract more Malaysians, especially the younger workers. “Educate and train them to use these machines. This alternative will allow younger workers to think that the industry has improved and that working conditions are not cumbersome,” he said.

Federation of Malaysian Manufacturers president Soh Thian Lai said the implementation of the 80:20 ratio had affected the ability of companies to increase production to meet increasing global demand.

He said the process to reduce dependence on foreign workers through automation was already taking place, but it was a gradual process that must continue to be supported by the government.