Due to migrant labor shortage, Malaysian companies are declining orders

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  • Malaysian companies are refusing orders and foregoing billions in sales, hampered by a shortage of more than a million workers.
  • Despite the lifting of the COVID-19 freeze on the recruitment of foreign workers in February, Malaysia has not seen a significant return of migrant workers due to slow government approvals.

Malaysian organizations, from palm oil mansions to semiconductor makers, are declining demands and forgoing billions of deals, hampered by a shortage of more than 1,000,000 experts that is undermining the country’s economic recovery .

Regardless of the lifting of a COVID-19 shutdown on the enlistment of unknown workers in February, Malaysia has not seen a critical comeback from itinerant workers due to slow government approvals and protracted exchanges with Indonesia. and Bangladesh on specialty stocks, according to industry gatherings, organizations and traders.

The product-dependent Southeast Asian country, a vital link in the global store network, depends on a large number of foreigners for the occupations of the production line, mansion and administrative area avoided by the local population as disorderly, dangerous and inconvenient.

Producers, who make up nearly a quarter of the economy, fear losing customers to different countries as development progresses.

“Despite greater good faith in positions and expanding deals, organizations are being seriously hampered in their ability to fulfill orders,” said Soh Thian Lai, head of the Federation of Malaysian Manufacturers, speaking to the north of 3,500 organizations.

Palm oil growers are on the edge, said Carl Bek-Nielsen, CEO of oil palm producer United Plantations (UTPS.KL).

“The circumstance is critical and especially like playing a game of football against 11 men while just being allowed to manage seven,” he said.

Malaysia needs as many as 1.2 million assembly, mansion and development workers, a shortage that is deteriorating day by day as demand grows with pandemic facilitation, reports industry and government.

Manufacturers say they lack 600,000 workers, development needs 550,000, the palm oil industry reports a shortage of 120,000 specialists, chip makers need 15,000 and cannot not meet needs despite a global shortage of chips, and clinical glove makers say they need 12,000 workers.

Malaysia’s PMI assembly fell to 50.1 in May from 51.6 in April, barely remaining in extension as the zone shed the most positions since August 2020, according to data. information from S&P Global.

Chipmakers are laying off customers, locals don’t want to work in the company and many of those who do join leave within a year, says Wong Siew Hai, head of the Malaysian Chip Industry Association. -drivers.

Palm oil industry, which contributes 5% to Malaysia’s economy, warns 3 million tonnes of yield could be lost for this year as natural products go unpicked, spelling woes over $4 billion.

The stretch glove industry estimates $700 million in lost revenue this year assuming the lack of work continues.

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Malaysia’s human resources ministry, which is responsible for approving the admission of unknown specialists, did not respond to questions from Reuters for information on the labor crisis and its monetary effect.

In April, Minister M. Saravanan said that the organizations had asked to recruit 475,000 mobile workers, but the service had only supported 2,065, firing some for lack of data or lack of consistency with guidelines.

Representatives from Indonesia and Bangladesh, two of Malaysia’s biggest sources of unknown work, told Reuters that worker privileges were key to preventing the securing of traveling workers.

Bangladesh agreed to an arrangement in December to send laborers, but execution was postponed after Dhaka fought off Malaysia’s proposed recruitment process, citing fears the arrangement would lead to inflated costs for workers. specialists and compulsory servitude, a conciliatory Bangladeshi source said.

“Our fundamental center is government aid and the freedoms of our workers,” said Bangladesh’s government aid in exile and overseas work service Imran Ahmed. “We make sure they get a standard salary, have a legitimate convenience, spend the least expense on relocation and get any government-supported pensions.”

He told Reuters that Dhaka “didn’t need workers to end up falling into the obligation trap”, adding that Malaysia was soon to employ 200,000 Bangladeshi specialists.

The United States has restricted seven Malaysian organizations in recent years on what Washington called forced labor.

Malaysia’s Saravanan, who was in Dhaka earlier this month, said Malaysia had given the Bangladeshi government consolation by guaranteeing better compensation and assurance of government assistance to workers. He denied claims that the recruitment system was flawed.

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Saravanan said last week that the public authority is sorting out specialized issues, enlistment strategies and agreements with certain source nations.

Indonesia’s representative in Malaysia, Hermono, who like many has a solitary name, has expressed concerns about worker safety in the ongoing two-way talks.

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