Latest news with #SohThianLai
The Star
26-05-2025
- Business
- The Star
‘Supply chains could be disrupted'
FMM cites knock-on effect from extended migrant repatriation programme PETALING JAYA: The extended Migrant Repatriation Programme 2.0 may have a knock-on effect on the nation's manufacturing sector due to disruptions in the supply chain, says the Federation of Malaysian Manufacturers. Its president Tan Sri Soh Thian Lai said while the programme would have little impact on the manufacturing industry as a whole, the sudden exit of foreign workers could disrupt supply chains. 'Our members mostly do not employ undocumented workers due to stringent audit requirements and high compliance expectations from both regulators and international clients. 'But the sudden departure of undocumented workers from other sectors, coupled with the current freeze on foreign worker recruitment, could result in a disruption to our supply chains and have a knock-on effect in various sectors, including manufacturing. 'The government must ensure a continuous and legally compliant supply of foreign workers to meet the needs of businesses and maintain industrial sustainability,' he said when contacted. For the programme to achieve success, Soh emphasised the necessity of implementing it alongside coordinated enforcement, public education and structural reforms aimed at addressing the underlying causes of undocumented employment. 'The misuse of business licences by locals, which enables undocumented workers to operate outside the legal employment system, is also a systemic issue that is unresolved,' he said. Soh suggested the government fast track the anti-Ali Baba law to prevent foreign workers from illegally operating businesses. 'We have consistently highlighted that this law is critical to tackling the root causes of undocumented employment and illegal business operations,' he added. Soh also said that more clarification is needed with regard to plans to allow foreign workers to transfer between employers across sectors. He said the proposal was merely communicated through an internal circular by the Immigration Department and lacked subsequent public clarity and implementation details. 'This has created uncertainty among employers and must be addressed promptly if the government intends for this mechanism to work in tandem with the repatriation programme,' he said. The government initially implemented the programme from March 1 to Dec 31 last year. It allowed undocumented migrants to return to their home countries without facing prosecution by paying a compound fine of between RM300 and RM500. On Friday, Home Minister Datuk Seri Saifuddin Nasution Ismail said the programme would be extended until April 30 next year. Small and Medium Enterprises Association Malaysia president Datuk William Ng said the government should consider legalising undocumented migrant workers if they were already gainfully employed. 'If they entered Malaysia illegally, knowing full well they were going to be working without documentation, why would they surrender themselves?' he said when contacted. Unlike Singapore, Ng said Malaysia doid not have problems with regard to the availability of land for workers' housing. 'It makes little sense to approach the issue of migrant workers as though they are depriving local individuals of employment opportunities. 'They are not, and this is starving our industry of growth,' he said. Kuala Lumpur and Selangor Indian Chambers of Commerce and Industry president Nivas Ragavan said the extension was a welcome move but needed better coordination. 'While digitalisation has helped the process, inconsistent enforcement and sudden changes in requirements often cause delays. 'More coordination between agencies would help,' he said. He also mentioned that there continued to be a shortage, particularly in the semi-skilled and low-skilled sectors. 'The repatriation programme may worsen this in the short term unless it is balanced with streamlined legal recruitment channels.'
The Sun
09-05-2025
- Business
- The Sun
FMM welcomes govt moves to relax foreign worker rules
PETALING JAYA: The Federation of Malaysian Manufacturers (FMM) said it strongly welcomes the government's recent policy to permit foreign workers to change employers across sectors. In a statement, the association said this decisive and pragmatic move comes at a critical time, offering much-needed relief to industries facing labour shortages amid the continued freeze on new foreign worker recruitment. FMM said the policy has the potential to help rebalance the distribution of labour across sectors, enabling companies with surplus workers to release them to sectors experiencing acute shortages, including manufacturing. FMM also supported the policy announcement on allowing applications on a case-by-case basis for the manufacturing sector, particularly to replace workers who have exited employment. This flexibility will assist in maintaining the continuity of operations and minimising disruption to production activities, it said. 'As a responsible employer organisation, and from a human resource management perspective, FMM underscores the importance of ensuring that the implementation of this policy aligns with regulatory compliance and ethical workforce practices,' FMM president Tan Sri Soh Thian Lai said. In line with this positive, FMM advocated for the portability of levy payments. In cases where a worker transfers to a new employer, the levy already paid by the former employer should be transferable. If the levy rate differs between sectors, the new employer should only be required to pay the difference. Soh said this approach promotes financial fairness and avoids double-burdening employers. FMM proposed that the Immigration Department to directly manage the intersectoral transfer process. It said a centrally coordinated system would ensure uniformity in procedures, reduce opportunities for abuse, and speed up approvals. The federation also urged the adoption of digitised processing with end-to-end visibility to enhance efficiency and transparency. An online platform featuring status tracking, audit trails and defined approval timelines would reduce administrative overhead and strengthen compliance monitoring, it said. In addition, FMM said, worker consent and safeguards must be prioritised. Transfers should only proceed with the worker's informed, voluntary consent and be properly documented. FMM noted that a formal grievance mechanism should be in place to resolve any disputes arising from such transfers. Finally, FMM recommended integrating databases for effective labour matching. 'Specifically, the MyFutureJobs platform should serve as a national clearinghouse to align surplus labour with industry demand. Employers should be encouraged to update their workforce status to promote transparency and reduce reliance on intermediaries,' Soh said. He noted that with these measures in place, the new policy can deliver its intended benefits while protecting the interests of all stakeholders involved.
New Straits Times
06-05-2025
- Business
- New Straits Times
Industry experts applaud govt's quick action on US tariffs
KUALA LUMPUR: Industry experts have welcomed the government's swift action in response to the United States' sudden imposition of reciprocal tariffs. The RM50 million allocation to the Malaysia External Trade Development Corporation (Matrade) is seen as a timely move to boost trade resilience and help exporters explore new market opportunities. Federation of Malaysian Manufacturers (FMM) president Tan Sri Soh Thian Lai said the initiative reflects the government's urgency in protecting Malaysian exporters from external shocks. It also signals a broader push to strengthen Malaysia's economic agility amid mounting global trade uncertainties. Soh said the additional funding for Matrade, aimed at supporting export efforts in regions such as the Gulf Cooperation Council, BRICS nations, South Africa and Latin America, is a timely and strategic move to diversify market exposure. "FMM has consistently called for targeted market access strategies as well as stronger backing for trade missions and export promotion initiatives in regions beyond Malaysia's traditional export partners. "These efforts are especially critical in the current climate, where many exporters are urgently repositioning away from the US market in response to tariff-related uncertainties," he said. According to Soh, the FMM's recent survey found that over half of the respondents are actively pursuing market diversification as a key strategy. To maximise the impact of this funding, he said it must be accompanied by more effective and responsive instruments particularly enhancements to the Market Development Grant (MDG). In addition to better supporting small and medium enterprises, Soh said the MDG framework should also empower trade associations such as FMM to organise targeted export missions and activities tailored to industry needs. "This includes raising funding caps for association-led missions, waiving the RM25,000 collaboration fee for partnering with Matrade and expanding eligible activities to include product adaptation, certification, digital marketing and market research. "Enabling associations to play a more proactive role in export promotion will significantly strengthen the reach and help businesses capitalise on new opportunities in non-traditional markets," he said. However, economist Dr Geoffrey Williams cautioned that while the government's allocation to the Matrade is a welcome move, it is only a modest measure in the broader effort needed to cushion Malaysian exporters from the fallout of the US' reciprocal tariffs. "The RM50 million allocation is small, but it will help cover some costs for a limited number of exporters. "Pivoting to new markets requires more than funding, but it demands identifying viable customers, building new supply chains, and navigating each country's trade regulations," he told the Business Times. Williams said over half of Malaysia's exports to the US come from the electrical and electronics sector, which remains largely unaffected by the new tariffs. However, industries such as iron and steel could face significant exposure if no bilateral resolution is achieved. He stressed that the government's emphasis on long-term market diversification is the right approach. "Markets like the European Union come with their own trade barriers, so looking to Asean, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, Regional Comprehensive Economic Partnership and Organisation of Islamic Cooperation countries, especially for halal goods, may offer more realistic alternatives," he said. Meanwhile, Williams said structural reforms will be needed to reduce Malaysia's reliance on any single export market. "If the outcome of this crisis leads to a more liberal global trade environment, Malaysia can come out stronger. But this will require patience, consistency and smarter policy execution," he added.
Daily Express
03-05-2025
- Business
- Daily Express
Call for national action plan to tackle worker housing
Call for national action plan to tackle worker housing Kuala Lumpur: The Federation of Malaysian Manufacturing (FMM) has proposed that the government formulate a National Action Plan on Labour Quarters to address the shortage of proper accommodation for workers, especially in key industrial areas and logistics hubs across the country. Its president, Tan Sri Soh Thian Lai, proposed that the action plan be implemented jointly by the Ministry of Housing and Local Government, the Ministry of Human Resources and local authorities. Advertisement 'The current shortfall in Centralised Labour Quarters (CLQ) and Temporary Labour Quarters (TLQ) has impacted both worker welfare and employer compliance with Act 446, which governs minimum standards of housing and amenities,' he said in a statement. He added that employers often face delays in obtaining development approvals and navigating bureaucratic processes, making it difficult to provide workers with safe, regulated living conditions. As such, the FMM recommended three core measures under the proposed action plan, namely the fast-tracking of approvals for CLQ and TLQ development, targeted incentives for employers and developers to build or retrofit proper accommodation, and public-private partnership (PPP) models aligned with local development strategies. 'These measures are essential to ensure that worker housing evolves in tandem with Malaysia's industrial growth,' Soh said. Advertisement On other developments, FMM also praised the government's broader labour reforms, citing the recent drop in unemployment to 3.1 per cent and the increase in female labour force participation to 56.2 per cent as signs of effective policy intervention. Soh said the introduction of the Madani Workers' Card, which offers discounts on essential goods and services, is a significant step forward in integrating social protection into worker benefits. Advertisement Prime Minister Datuk Seri Anwar Ibrahim when delivering his message in conjunction with the 2025 National Labour Day celebration at Axiata Arena, Bukit Jalil here. Thursday, announced that one million union members will receive discounts of up to 30 per cent from over 100 companies offering essential goods and services through the Madani Workers' Card initiative. 'This is in appreciation of workers for their hard work in carrying out their duties and trust,' Anwar said. In a nod to Malaysia's labour movement history, Soh welcomed the revival of the 'Solidariti Perjuangan' song, penned by Human Resources Minister Steven Sim, which he said serves as a timely reminder of the central role of workers in nation-building.
Borneo Post
02-05-2025
- Business
- Borneo Post
Federation calls for national action plan to tackle worker housing shortage
Soh added that the Ministry of Local Government and Development, the Ministry of Human Resources, and local authorities should be engaged to see fast-tracked approvals for CLQ and TLQ development. KUCHING (May 3): The Federation of Malaysian Manufacturing (FMM) has called for a National Action Plan on Labour Quarters to address the critical shortage of Centralised Labour Quarters (CLQ) and Temporary Labour Quarters (TLQ) across the country. Its president Tan Sri Dato Soh Thian Lai said CLQ and TLQ are in high demand, particularly in key industrial zones and logistics hubs. 'This shortfall continues to affect worker welfare and places pressure on employers tasked with compliance under Act 446, the Employees' Minimum Standards of Housing, Accommodations and Amenities Act 1990,' he said in a statement yesterday. As such, Soh added that the Ministry of Local Government and Development, the Ministry of Human Resources, and local authorities should be engaged to see fast-tracked approvals for CLQ and TLQ development. He proposed that the government come up with targeted incentives for developers and employers to build or retrofit proper worker housing, while calling for public-Private Partnership (PPP) models aligned with local and industrial development strategies. He also said FMM welcomes Prime Minister Datuk Seri Anwar Ibrahim's keynote address on Labour Day, which captured the spirit of inclusive development and justice for the workforce. 'His bold assertion that 'one-room-one-toilet housing is no longer suitable', and his challenge that 'when there are so many facilities for the rich, it should not be impossible to find land to build decent homes for workers' reflect an urgent national priority that deserves broad support.' Additionally, Soh said FMM acknowledges Human Resources Minister Steven Sim's remark on the notable reduction in the national employment rate to 3.1 per cent, the lowest in recent years. He was also delighted to note the increase in female labour force participation to 56.2 per cent, a meaningful milestone in gender empowerment and economic inclusion, as well as the launch of the Kad Pekerja Madani, integrating worker identification, and social protection via discounts of up to 30 per cent from over 100 companies offering essential goods and services. Furthermore, Soh believed that the MyFutureJobs mobile application, an AI-driven job matching platform, will support the digital transformation of Malaysia's labour market. He said FMM is ready to support the utilisation and continuous improvement of the MyFutureJobs system through industry collaboration, ensuring it remains responsive to real-time market demand, skills matching, and sectoral workforce planning. 'FMM remains committed to working closely with the government in ensuring that economic progress is matched by meaningful social protection and long-term workforce resilience,' he added.
