The Malaysian Insight

THE construction sector suffers from a year-round labour shortage, said stakeholders, adding that industry players are bound by Putrajaya’s foreign labour policies, with each new policy a source of anxiety for firms.

They said both the previous and current administrations have been unable to formulate policies that satisfy industry demands and can permanently resolve worker-shortage woes.

In the real estate sector, foreign labour makes up almost the entire construction workforce.

Over the past year, the number of foreign labourers entering the industry has not matched up with the number leaving, with some unwilling to return to Malaysia after the expiry of their work visas. This has left contractors scrambling for workers to meet project deadlines.

Master Builders’ Association Malaysia president Foo Chek Lee told The Malaysian Insight that many developers of projects in the Klang Valley have raised wages to attract labourers.

Most workers can be won over with an increase of a mere RM5 per hour, he said.

“Most foreign labourers earn about RM70 to RM80 per hour. The more experienced workers can get up to between RM150 and RM180 per hour, for eight hours’ work a day.

“If you raise the hourly pay by RM5, there will be people willing to work. That’s what contractors are doing now.”

He said the construction of projects is progressing slowly nationwide due to the labour shortage.

“Workers from Indonesia, Bangladesh and Nepal are refusing to come, especially the Indonesians, who can earn more in their own country. Some developers are hoping to train locals for these jobs.

“Foreign labourers’ pay is getting higher and higher, and developers have to foot the bill. This is one of the issues we’re facing now.”

He added that developers, as much as possible, want to avoid extending project deadlines, as late deliveries could have legal consequences.

Steve Chong, Johor chairman of the Real Estate and Housing Developers’ Association, said increasing workers’ wages is understandable, given the labour shortage.

“Foreign labourers come to Malaysia to earn money, so they will work with those who offer better pay. Developers need to finish their projects within a set period, so they have no choice but to raise wages.”

He said he feels that Malaysia has become a “training ground” for foreign workers, a good number of whom refuse to return after their work visas expire.

“We understand the government’s concern that too many foreign labourers could cause security problems. But the United Arab Emirates, a country that relies heavily on foreign labourers, has been managing the issue well.”

He said more than 60% of Dubai’s population comprised foreign labourers, but the crime rate there is low.

“We are not criticising, merely suggesting… we hope the government will scrutinise the issue and find out how to manage foreign labourers.”

According to Immigration Department data, as of June 30, there were more than two million foreign workers in Malaysia, or 13.2% of the total workforce. The 11th Malaysia Plan aims to keep the percentage of such workers below 15%.

Most of Malaysia’s foreign labourers come from Asian nations, such as Indonesia, Bangladesh and Cambodia, and work in the construction, manufacturing, farming, services, domestic help and animal husbandry sectors. – July 29, 2019.