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Friday, July 24, 2026
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Kuala Lumpur
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‘RM30,000 fine per worker will hurt ailing firms’

PETALING JAYA: The Malaysian Employers Federation (MEF) has strongly objected to the proposal to fine companies up to RM30,000 per worker if they fail to employ foreign workers within 30 days of their arrival date.

Its president Datuk Syed Hussain Syed Husman said better mechanisms are needed to assist employers in difficulties, rather than penalising them.

“An RM30,000 per head fine will not help companies that are already in financial difficulties. Such a move should be avoided,” he said when commenting on the proposal made by Plantation Industries and Commodities Minister Datuk Seri Johari Abdul Ghani.

“We cannot impose penalties based on feelings or emotions. Making assumptions (about the excess of workers) without actual data is misleading,” Syed Hussain told theSun.

“It is said that for every legal foreign worker in Malaysia, there are about 1.5 to 2.5 illegals. However, this is a mere estimate.”

Syed Hussain also said there are about 180,000 legal refugees and asylum seekers in the country who hold UN High Commissioner for Refugees identity cards, and the figure would be higher if those without the cards were included.

“Most employers who applied for foreign workers have hired them,” he said, adding that the presence of a large number of illegals has prompted the “perception” that there are too many foreign workers in the country.

“Unless the authorities can show the data of employers and the number of foreign workers without jobs, the claims that there are too many of them is only an assumption.

“The authorities should not use one or two examples to paint a bad picture of employers, who are generally responsible and doing their best to be more productive and competitive.”

Syed Hussain said the cost of hiring legal foreign workers is about RM20,000 to RM25,000 per head.

He suggested that employers who bring in workers but are unable to provide jobs for them should be reimbursed by their next employer.

He said sometimes employers need to make manpower changes based on global challenges, which may result in fewer workers needed than predicted, and this could lead to having excess foreign workers.

Syed Hussain said the matter must be studied in detail to address the issues at source.

“We cannot pass blanket comments to penalise all employers since there may be genuine reasons for not employing the foreign workers brought into the country.”

He said MEF, however, agrees that action must be taken against irresponsible recruiters who bring in foreign workers without pre-arranging jobs for them.

Syed Hussain said foreign workers who are already in the country could be employed in other sectors rather than be deported.

He said rubber plantations, for instance, could not find suitable tappers as they need to have specialised skills, otherwise the trees would be damaged and cannot be tapped in future.

“Not many foreign workers are keen to work in rubber plantations. The rubber industry is labour intensive with a ratio of one worker to 1.5ha compared with oil palm plantations, where the ratio is 1:15ha.”

He said labour-intensive sectors need to digitalise, automate and mechanise to be more productive and competitive.

“The government needs to assist employers to adopt modern technologies and upgrade their operations processes.”

Syed Hussain reiterated his call that the Human Resources Ministry be the only one dealing with the recruitment and management of foreign workers.

“If this is done, there will be transparency and accountability regarding foreign workers brought into the country.”

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