“The impact on Sabah is more dire given its’ cost-disadvantageous position and this warrants help from the Federal Government, not punitive measures.”
An FSI Spokesman warned that the majority of its members, smalltime firms employing from five to 100 foreign workers, cannot afford to foot further foreign worker levy hikes, let alone a whopping 147.5 per cent per cent hike especially in today’s depressed economy. “SMIs and SMEs form the backbone of the industries in Sabah.”
The FSI poses the question: “Is the Federal Government so desperate for money to the extent that it’s willing to sacrifice the industries despite today’s challenging environment?
“Given the situation, the industries expect the government to be more business-friendly, to intervene and play its role to facilitate businesses,” said the FSI Spokesman. “Sadly, the authorities concerned have bulldozed their way to declare a stance that’s not in the best interest of us all.”
“It spells trouble for the struggling industries in Sabah and the people.”
The FSI expects that the new levy, if implemented, will force manufacturers and other industries to reduce their manpower and production and/or pass on the higher costs of production to consumers. “The move will potentially drive employers to hire illegal or undocumented foreign labour, thus depriving the Federal Government of the levy income while compounding the problems created by illegals including social ills,” said the Spokesman. “In other words, the move to increase the foreign worker levy will backfire.”
Alternatively, the FSI urged the Federal and Sabah Governments to consider accepting the illegal immigrants in the state into the workforce by legalizing them for employment in sectors already dependent on foreign labour viz. manufacturing, construction, plantation, and agriculture. “Locals shy away from these sectors as they are deemed dirty, difficult and dangerous.”
“Another sector employing foreign labour is the services sector, especially F&B and hospitality.”
The sectors combined, said FSI, employ 926,400 workers or 57 per cent of total employment in Sabah. “Of the total 3.2 million people in Sabah, approximately 900,000 are registered foreigners in Sabah.”
“Sabah has a low unemployment rate with only 79, 000 people registered as looking for employment to fill 141, 000 vacancies. This works out to 4.7 per cent or almost full employment.”