Tighter Controls on Foreiners Impacting Malaysian Businesses

Strict new laws aimed at reducing the number of external dressers in Malaysia ar having an impact on the plains small businesses, especially its manufacturing, catering and hospitality sectors. In January the presidential term banned Malaysian companies in the manufacturing and services sectors from hiring foreign workers in a move designed to combat unemployment, which rose 4% in the first quarter of this year. Companies outside of these sectors have had their capability to recruit foreigners severely restricted. The policy has been backed by the rustics unions who see it as a way to ameliorate job security for its members and foreign workers and to drive up wages. Because of the spherical economic downturn, we were worried about the impact on jobs for Malaysians as well as foreigners, said Raja Sekaran Govindasamy, secretary prevalent of the Malaysian Trade Unions Congress. We dont want workers to be brought in and rescinded, because that then causes hardship. According to official figures there are around 2.2 million foreign workers in Malaysia, a country of 28 million, mostly from Indonesia, Burma, the Philippines and India. As many as a further 1 million foreigners could be working illegitimately in the country.

The recruitment halt will stem this flow, whilst the administrations refusal to renew as many as 300,000 work permits will push this figure lower. Malaysia faces increasing competition from mainland China in the manufacturing sector, argues Mohammed Ariff, director of the Malaysian Institute of Economic Research. To substantial future growth, claims Ariff, Malaysia should move away from labour intensive industries towards high skilled industries, like financial services, research and development and healthcare. Ariff says that move up wages in manufacturing in the early 1990s prompted employers to demand investing in hi-tech labour-saving production methods, only to abandon their plans when the government allowed them to hire cheaper foreign workers. The recruitment... If you want to get a full essay, order it on our website: Orderessay

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