56 business groups air grouses to Miti

By K. Parkaran – July 15, 2022

A version of this article was first published on FreeMalaysiaToday

PETALING JAYA: Fifty-six business associations have relayed their concerns to the international trade and industry ministry (Miti) about problems Malaysian industries are facing.

Speaking to FMT anonymously, association representatives claim some manufacturers might relocate to neighbouring countries if the problems were unresolved.

Miti deputy secretary-general Norazman Ayub invited them to a pow-wow last Friday on a slew of issues faced by manufacturers.

The invitation stated that the meeting was to discuss challenges within the industry in a post-Covid economic recovery.-ADVERTISEMENT-Ads by 

The representatives said the shortage of foreign workers had become a major problem and that this was the main complaint raised at the meeting.

One of them said: “Many firms that applied for foreign workers were turned down on the grounds that they must adhere to the local-to-foreign workforce ratio of 80:20.

“This is simply impossible as Malaysians are just not interested in working in factories that are not air-conditioned.

“Nine out of 10 new workers last only for a few days, with some reporting in the morning and leaving in the afternoon. How are we ever going to achieve the 80% local worker ratio?”

He said they asked for a two-year postponement of this requirement to help get them back on track and were waiting for an official directive on the matter.

Another source said one representative alleged that some agents were asking for under-the-counter payments for work permits, which he said could be between RM1,000 and RM1,200.

Among other problems raised were a difficulty in getting visas, ambiguity and overlapping in the roles of investment agencies, protraction in the approval of applications and a lack of “a real one-stop agency”.

“They also complained about the domestic trade and consumer affairs ministry’s non-friendly stance and the high corporate income tax compared to other Asean nations,” the source said.

One representative said all these issues were pressing and would adversely affect investments in the country.

He said some representatives mentioned the possibility of manufacturers shifting to Vietnam, Indonesia, Thailand and Myanmar.

FMT has contacted the ministry for comments.