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Reduce security deposit to RM50K: Employment agencies
Published on: Monday, October 22, 2018
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Reduce security deposit to RM50K: Employment agencies
Kota Kinabalu: There is a need to review the RM250,000 security deposit set for private employment agency licence under the Category C as stipulated in the Private Employment Agency Act 1981 (Amended 2017).Sabah Foreign Workers Employment Agency Association (Pappas) President Anthony Leong said majority of the private employment agencies in the State fall under the Category C for job placements within and outside Malaysia, and for non-Malaysian workers in Malaysia.

He said the Government needs to consider either reducing the amount from RM250,000 to RM50,000 or postpone its implementation in Sabah due to the current not encouraging economic situation.

"We are appealing to the Government to consider reducing the security deposit from RM250,000 to RM50,000 in view of our very limited source of labour supply for Sabah, which are only the Philippines and Indonesia.

"Unlike in the peninsula where the recruitment agencies are allowed to source foreign labour from other countries like Bangladesh and Nepal, apart from the Philippines and Indonesia.

"Therefore, we feel it is only fair for the private employment agencies in Sabah to pay RM50,000 security deposit instead of RM250,000," he told Daily Express after opening the Pappas Annual Dinner 2018, here.

Anthony said furthermore, the RM50,000 security deposit was imposed on the private employment agencies in the State when the Special Task Force Committee issued the licences from 1999 until 2015.

"Since three years ago, the Sabah Labour Department has taken over the issuance of the Category C licence from the Special Task Force Committee," he said.

"In February this year, the Sabah Labour Department issued a letter to all the private employment agencies under the Category C in Sabah to pay RM250,000 security deposit on a yearly basis regardless of whether their licences have expired.

"Many employment agency operators are worried, including our members, because they could not afford to pay such a big amount as quite a number of them are doing the business on a small scale and on a part-time basis, and also they were used to only paying RM50,000 for over 10 years," he added.

Anthony said the private employment agencies also need to prepare another RM250,000 as paid-up capital for the Category C licence.

"We hope the State Government will heed our plight and assist us in any way it can. At the same time, we are confident the new federal Pakatan Harapan Government will help solve the problem we are facing."

On another matter, Anthony said Pappas is proposing to the State Government to allow the creation of an online system for the upcoming regularisation (Pemutihan) programme in Sabah covering the whole process, starting from the registration of illegal foreign workers right up to the completion of work pass for the State Government.

"In light of this, Pappas is offering its expertise of over 20 years to the present State Government to manage and handle any government programmes related to registering illegal foreign workers in Sabah," he said. - Hayati Dzulkifli


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