Kuala Lumpur: The Federation of Chinese Associations Malaysia (Huazong) welcomed the move to stop using agents to recruit foreign workers, as it involved higher costs.
Its President Tan Sri T.C Goh said this would help to bring down the cost of doing business, hence, boosting Malaysia’s competitive edge and speeding up recovery.
He noted that the high fees imposed by recruitment agents have long been blamed for increased costs for foreign workers looking to work in Malaysia.
They are often forced to take high-interest loans or mortgage their land to pay the recruitment fees, putting them into “bondage”.
Goh, who is also Federation of Chinese Associations Sabah (FCAS) President, expressed full support for Prime Minister Datuk Seri Anwar Ibrahim for the decision.
The Prime Minister said that due to the involvement of recruitment agents, the cost of hiring workers from Nepal is only RM3,700 but for hiring of workers from Bangladesh and Indonesia, each involved between RM20,000 and RM25,000.
He said if the government did not act fast to address this issue, it may further increase the cost of doing business and make the existing issue of illegal foreign workers worse.
Sectors like plantations, agriculture, food and beverages and manufacturing are heavily dependent on foreign labour.
Goh said high fees charged by profiteering agents were tantamount to “modern slavery”.
He also welcomed the government’s ongoing Labour Recalibration Programme 2.0 (RTK 2.0) which allows employers to register illegal foreign workers.
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