Page 37 - BPAReport

CHAPTER 4: ISSUES AND CHALLENGES ARISING FROM CURRENT
POLICIES IN THE MANAGEMENT OF FOREIGN WORKERS

1. This chapter describes the feedback and criticisms from industry, civil society and
other stakeholders on the shortcomings and embedded corrupt practices in the policies and
procedures pertaining to the engaging foreign workers. They portray a foreign worker
management system which is in disarray and dysfunctional. More alarmingly, the
Independent Committee has detected unethical practices, collusion and transgressions in the
procurement of service providers for procedures essential to effective foreign worker
management. Additionally, these rent seeking, money-making and captive preferences have
inflated the operational and developmental costs to employers, employees and the
Government.

2. This state of affairs is causing some distress to the production process of industry
which is negatively impacting the future investment outlook with dire implications for the
pace and sustainability of economic prospects. The Government needs to reform in a
comprehensive manner the policies for recruiting, employing and monitoring foreign workers.
In so doing, it should draw lessons from the policy reforms and best practices in regard to
foreign workers undertaken by other countries, in particular the strengthening of enforcement
capabilities and reducing reliance on foreign workers including the complications arising
from the presence of undocumented foreign workers.

3. Furthermore, a comprehensive policy for the management of foreign workers must
also consider the right to work of refugees and asylum seekers, foreign spouses of Malaysian
citizens as well as of expatriates, stateless persons and other groups of persons, consistent
with international obligations and human rights.

4.1 Shortcomings of overall policy on governance for foreign worker management

4. The actions of multiple ministries and agencies have largely been uncoordinated and
have frequently given rise to inconsistencies, inefficiencies and contradictions in policy
objectives and directions in the management of foreign workers. There is thus essentially an
absence of a coherent system to manage the number of foreign workers to support the
production of goods and services in the industries which need them and to cope with the
undue reliance especially on low skilled foreign workers.

5. Some details of the many shortcomings identified by stakeholders include the
arbitrary nature in the determination of the quantity of workers applied for, e.g. where
decisions were often made that granted a lower number of workers than requested for without
explanation and following lengthy delays. Furthermore, the procedure in seeking special
approvals to secure foreign workers are often lacking transparency. The approvals could be
secured from sector ministries, with the ultimate authority (when needed) to grant, adjust and
even overturn any approvals vested in the Minister of Home Affairs.

6. Of specific interest is the distinct arrangements applicable to investors and projects
from China, where special dispensations are provided for the deployment of Chinese workers
and where the applicability of Malaysian employment laws are unclear. It was always a

35