PETALING JAYA, March 15 – The RM60 billion mini Budget might provide guarantees for local businessmen but it has also brought on a huge problem, crippling double levies for both new and existing foreign workers that keep Malaysian exports competitive.
The government imposed the levies in the mini Budget to encourage Malaysian small and medium enterprises (SMEs) to employ locals but factory managers and even restaurateurs say Malaysians ask for too much but produce too little, forcing them to rely on foreign workers.
The SMI Association of Malaysia is now appealing to the government to consider the double levy, to be paid by employers, only for new foreign workers and not for existing workers.
The association said the imposition of the double levy on existing foreign workers already in the country will cause the small and medium enterprises (SMEs) to be penalised and burdened with unexpected additional costs during difficult times.
It is estimated that 500,000 foreign workers are employed by the SMEs currently.
Its national president, Chua Tiam Wee pointed out that the SMEs are already feeling the pinch of the deteriorating economic crisis and most have limited resources and reserves to last for about six months.
Without the immediate government action to stimulate domestic demand strongly, Chua said, many SMEs will need to take drastic action to downsize or even see closure in the coming six months.
“When the budget was announced, we had simultaneous dialogue with the Ministry of International Trade and Industry (MITI) to give our feedback. We hope MITI will forward our feedback to the government,” Bernama quoted him as saying yesterday.
Currently, the SMEs employ 5.6 million or 56 per cent of the total workforce, a mere five percent closure by SMEs will mean over 250,000 workers will face retrenchment, he noted.
On the new RM5 billion Working Capital Guarantee Fund and another RM5 billion Industry Restructuring Loan Guarantee Fund announced in the second stimulus package, Chua said the speedy disbursement of such funds lie on the willingnes of banks to lend.
“To assist SMEs facing difficulties, a one year moratorium should be allowed for them to service their loan interest only,” he said.
He added the government should monitor the approval and disbursement closely to ensure banks act speedily and responsibly.
Meanwhile, The Sunday Star reported that the Home Ministry has seen the “locals first” policy result in work permit approvals for foreign workers cut by almost 70 percent.
In January and February, an average of 250 permits were approved daily compared to 800 last year.
Home Ministry deputy secretary-general Datuk Raja Azahar Raja Abdul Manap, who disclosed this to Sunday Star, added that there was a time when up to 2,000 approvals were granted daily.
He attributed the decrease to a more thorough vetting process by the ministry.
The ministry approved 301,682 foreign workers last year but is confident of achieving its target of reducing the number of foreign workers to 1.5 million by 2015.
it appears that RM60 BLN is not enough 2 manage 13 states in malaysia at all.
where did RM60 BLN come from?i hope it is not from KWSP again.
call back all the local workers who lost their jobs from foreign countries like US and europe including japan and korea.
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As many goverment policy are made base on the feedback from the elite few who are close associate to the politician or high ranking goverment officier. These elite few are of the same group of those depend on hand out from the goverment. Their feedback shall only benifit these few. Do we really need these foriegn workers to enhance our producvity at these hard time? As compare to local are they more hard working which ensure better producvity? For SME that still require these more productive foriegn worker must be allow to continue to do so. In any industry when things go slow the cost cutting measure shall come to force. Management shall have to consider producvity and the cost. There is no logic for a management to go for cheap labour if there is lower productivity which go to say that if a local are more productive even with higher pay they can be assure of their job. In this bad time imposing higher levy which means additional cost which in the end shall be past to the comsumer which cause the competative to fall and eventually to fold up.
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So what if the SMEs need to pay more to Malaysians?
The money remains in Malaysia and circulates in Malaysia unlike monies even lower paid to foreigners and goes out of the country. These then will create even more economic activities.
Ever know why countries like Japan and many countries just refuse to have foreign workers even if they are cheap? It is to take care of the living standards of their own local people. They improve on their products the most efficient ways to compensate for higher labour costs.
Malaysian SMEs must find more efficient methods of production to lower their cost not just lowering wages and giving them to foreigners while Malaysians suffer.
I totally disagree with DSAI on this.
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Money Money Money Reply:
March 18th, 2009 at 1:40 pm
Hope that money is use wisely and not for cronies or son in laws
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hope the 60 billion will FULLY used to enegised our economy. Its not a fair thing to increase the levy of the existing worker. And for the new workers can make it equal maybe 30% for all the categories not only for certain category like plantation etc.. be fair for all business.
Also hope the 60billion not mis-used for the election campaign. And dun waste the rakyat money just like what happen in terengganu : million ringgit spent for camp rental and so on. no need of aircon camp all. vips wont die for just a few hours leaving without aircon. care the people’s money please.
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saya bersetuju dgn tindakan kerajaan mengenakan levi yg tinggi ke atas pengambilan pekerja asing. Rakyat kita byk yang tak dapat kerja, bukan tak mau kerja, kebanyakkan dah disapu oleh pekerja asing akibat kerakusan para peniaga. Bidang-bidang professional pun mula dipelopori oleh orang asing. Sampai bila kita nak anaktirikan orang kita sendiri demi keuntungan.
Saya nak minta kerajaan PR perjuangkanlah hak-hak orang kita sendiri. Bagi rakyat sendiri keja… BeeNd tak tau malu bila Bersama Mu terus menerus menyiarkan orang-orang miskin yang tak dak keja. Hidup melarat. Wakil rakyat BeEnd bila media datang baru nak tunjuk muka, buat baik konon. Yang bertahun-tahun jadi wakil rakyat nape tak pi tgk. menyampah betuilah. Baling kasut bagi baru tau!!
Salam dari
Pejuang Demokrasi Sebenar.
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