FSI: Govt should have discussed with stakeholders
Published on: Thursday, January 05, 2017
Kota Kinabalu: The Federation of Sabah Industries (FSI) has joined the chorus in opposing the Government's decision requiring employers to pay the annual levy for foreign workers effective Jan. 1.The Federation currently serving more than 150 members comprising major players to SMEs and cottage industries involved in various manufacturing and non-manufacturing activities in Sabah strongly believed that implementation of the ruling under the Employer Mandatory Commitment (EMC) would have a devastating impact on employers given the poor economic climate.At the same time, FSI said the policy disallowing employers from deducting the levy from the wages of foreign workers would not benefit the economy because the cost not only impacts employers but consumers as well.
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FSI is calling the authorities concerned to defer the decision and immediately conduct a dialogue with all the stakeholders to find a win-win solution to controversy."Just like the other affected parties, we do not agree to this policy because the government did not discuss the matter with the stakeholders before enforcing the policy," FSI President Mohd Basri Abdul Gafar said. Given the high costs of raw materials, labour, operational logistics, GST, among others, Mohd Basri said enforcing the policy is a bad move and wrong timing.He also vehemently disagreed that the policy will help reduce cases of workers fleeing, working illegally in other sectors and overstaying.
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"Employers here are responsible businessmen and caring bosses who do not take for granted the interest and welfare of their workers. Bosses are aware that workers are assets to their businesses and it is for this reason that foreign workers are well taken cared in terms of providing proper documents, commensurate wages, good working environment and other basic amenities," he stressed.Mohd Basri said it would also be worth pondering for the government to consider reducing the current levy for foreign workers as long term solution to address the issue.
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Lowering the fees for foreign workers would greatly help in the logistical aspects of employers which will automatically bring more revenues to the government and curb the hiring of illegal foreign workforce.Mohd Basri also reiterated that FSI will continue to work closely with educational institutions here to help boost the local workforce in the near future.Recently, Kota Kinabalu Chinese Chamber of Commerce and Industry (KKCCI) President Datuk Michael Lui also said the poly will place a heavy burden on the business community in Sabah and country.Expressing shock over the announcement by Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi on the matter, he said the government had just implemented the minimum wages order 2016on July 1, now the government wants the emplyers to be responsible for paying the levy of foreign workers."(This) definitely will increase the cost of operation which is a further burden to employers during this most difficult and critical times when business community is facing heavy pressure," Lui stressed.Stay up-to-date by following Daily Express’s Telegram channel.
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