GEORGE TOWN – Frustration over unauthorised fee collection at a migrant workers’ hostel in Bukit Mertajam boiled over into a riot on June 20, with dozens of workers arrested after a company van was vandalised outside the premises.
Police said 46 workers were detained at The Summit Hotel building, which had been converted into a temporary labour quarters (TLQ) by a company based in the Bukit Minyak industrial area.
The unrest is believed to have been sparked by anger towards the hostel warden – a fellow foreign national – who had been collecting fines for smoking and drinking violations under strict hostel rules.
The fines were allegedly imposed without the company’s knowledge or approval, said Seberang Prai Tengah police chief Helmi Aris.
Speaking to Scoop, labour groups said the incident reflects a wider, ongoing problem: migrant workers being subjected to excessive and illegal fee deductions in their living quarters, with most cases going unreported.
Glorene Das of Tenaganita said her organisation has handled multiple cases involving supervisors or subcontractors collecting money under the guise of service fees, meal allowances, deposit deductions or hostel charges – often without records or employer consent.
“And this is really a form of exploitation and financial abuse. As we all know, migrant workers are often afraid to speak up because of fear of retaliation,” she told Scoop.
“But when the burden becomes too heavy, protests like the one in Bukit Mertajam happen. The truth is, many similar incidents go unreported. This reflects a deeper problem.”
Adrian Pereira of North-South Initiative (NSI) said his organisation has seen cases where accommodation deductions – sometimes capped at RM50 – are abruptly raised to RM100, and workers are also forced to pay for electricity.
“Whenever the workers do get upset, they will complain to us. We would then talk to the employer to resolve it, provided that the workers have the evidence and that they know the right, safest channel to complain,” he told Scoop, adding that demonstration laws offer little protection to foreign workers.
Poor accommodation adds to unrest, rules must be agreed upon
Das said poor living conditions often compound workers’ frustrations, citing overcrowded, dirty, and unsafe hostels with poor ventilation, no clean water, and faulty toilets.
She said some workers live 15 to a room with minimal privacy or mobility, while still being made to pay additional fees or endure abusive supervisors.
“These harsh and unjust conditions, of course, build the workers' frustration and anger, and certainly it's not a surprise when workers finally speak out or even protest,” she explained.
She said such practices continue due to weak oversight, lack of transparency, and inadequate protection of workers’ rights.
The riot drew the attention of Human Resources Minister and Bukit Mertajam MP Steven Sim, who warned that employers and hostel operators risk losing their licences if they neglect workers’ welfare or discipline.
Das welcomed the warning, saying licence revocation would be a strong deterrent and signals serious intent from the government.
She said proper enforcement of the Employee Minimum Standards of Housing, Accommodation and Amenities Act 1990 (Act 446) could push operators to fix poor conditions and comply with guidelines.
“There needs to be regular inspections, and there needs to be clear and transparent rules on fees collected from the workers, and safe ways for workers to report problems without fear and an independent grievance mechanism,” she stressed.
Pereira said policies on hostel management – including payments for electricity or accommodation, and disciplinary fines – should be agreed upon between employers and workers from the outset.
He said rules on smoking and alcohol must be clearly posted, and workers must be properly briefed.
“You will collect the money, but then the problem is not solved,” he said, urging a social rather than punitive approach.
He added that communication barriers often prevent workers from understanding their responsibilities, while some agents exploit the confusion by collecting illegal fines. This, he said, creates further complications, especially when hostels are managed by third-party operators.
“They have to monitor and make sure the (labour) standards are supported and followed. The third party's job is just to provide the service – but the responsibility still lies with the employer.”
From hotel to hostel
The Summit Hotel, built in 1997 as part of The Summit Mall complex in central Bukit Mertajam, was allowed to be converted into a TLQ by the Seberang Perai City Council (MBSP) in 2023, said Penang executive councillor Jason H’ng Mooi Lye.
The state issued TLQ guidelines last year, effective until December 31, 2027, after which no TLQs will be allowed to operate. The hotel’s TLQ licence expires on that date.
Sim said 1,113 workers are currently housed at the site: 943 Bangladeshis, 129 Nepalese, and 38 Burmese. He said only one company’s workers were involved in the riot. Both the police and the Labour Department are investigating, including for potential breaches of Act 446.
Asked whether old hotels like The Summit are suitable for TLQs, Pereira said repurposing such buildings is preferable to leaving them abandoned, but stressed that compliance with housing standards is non-negotiable.
“How much space do they have per room? How about the ventilation? How many toilets are there for workers?
“Were any renovation works done in these hotels? These are the questions that need to be asked.” – June 27, 2025
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