By Sin Chew Daily
The government introduced the Employer Mandatory Commitment (EMC) with effect from Jan 1, making it compulsory for employers to bear the levy for their foreign workers.
This measure has sparked outrage among local businesses. More than 150 business associations decided to send a joint letter to the prime minister to express their disapproval of the new policy ahead of the Wednesday cabinet meeting.
This policy has been designed to make the employers more accountable for their foreign employees’ well-being while preventing foreign workers from running away or illegally changing job sectors, overstaying or becoming illegal workers.
The policy sounds reasonable but from the standpoint of the business sector, it carries an altogether different meaning.
Malaysian businesses generally oppose the measure which will further burden the employers and increase their overheads, especially those in labour-intensive industries.
Undeniably under the new policy, businesses will see their operating costs rising.
Take the manufacturing industry for instance, the levy for foreign workers is RM1,850. If a company hires 100 foreign workers, it will have to come up with RM185,000 annually for the foreign worker levy alone.
The higher operating cost will not only affect the businesses but also the consumers. With that, 159 business associations have warned that they will eventually transfer the additional cost to the consumers.
The government and the business sector appear to be standing on opposite sides in this particular matter. To the government, the employers have an obligation to take care of their foreign workers while businesses look at this from the costing point of view, dismissing the measure as not business-friendly.
As a matter of fact, if the two sides were able to communicate amicably beforehand, the conflict would have been brought to a minimum.
The year ahead is full of challenges. In the absence of favourable factors, the country’s economic prospects are gloomy. Before the government introduces any new measure, it should have first studied the dilemma and stress encountered by the businesses.
This will help the businesses expand and in turn stimulate the national economy, instead of introducing measures that will have a negative bearing on their operations.
While the government indeed has good reasons to introduce the EMC, it should have had a cordial dialogue with the employers beforehand. The sudden announcement without any prior communication will only catch the businesses unprepared and hence the aggressive backlash.
The government must act prudently given the fact that the new policy will deal a severe blow on business operations and is unfavourable toward their further development.
The government should have talked it over with the affected businesses in a bid to identify the solutions while drawing up a grace period for the progressive implementation of the measure in minimising the impact.
Sin Chew Daily is a local vernacular publication
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