MBAM, trade partners discuss issues relating to foreign workers

PETALING JAYA (Sept 18): The recent increase in the minimum wages for Indonesian workers in the construction sector was not timely, according to Master Builders Association Malaysia (MBAM).

MBAM also noted that the association and Malaysian government were not consulted on the matter even though it was brought up by the Indonesian Labour Attaché in a meeting with MBAM in June, it said in a press statement today.

“MBAM members have no objection paying RM50 (a day) for existing semi-skilled/skilled workers but the amount was rather high for new workers, which are categorised as general workers,” it said.

MBAM and 26 trade partners discussed several issues at today's MBAM Affiliate Dialogue 2015. Among them is the appeal to the government to extend the status of foreign workers under the 6P programme, which will expire at the end of this year.

“The workers are now skilled and experienced and the industry has invested a lot in their training,” the statement said. “If the appeal is not successful, by January 2016, these workers will be considered illegals.”

MBAM also disagreed with the proposed Employment Insurance Scheme (EIS) by the Ministry of Human Resources as it will incur more cost and not conducive to employers in the current economic climate.

It noted that the Malaysia Employers Federation’s (MEF) is coming up with a counter proposal that covers a tripartite contribution from the employer, employee and government, if the government still wants to proceed with EIS.

In matters related to the Goods and Services Tax, MBAM urged for a faster return on output tax for contractors, who are experiencing tighter cash flow. It will also continue to appeal for a reduction for both import duties and sales tax on construction machineries.