The Malaysian Insight

PAYING locals higher wages is not the main problem as Malaysians still shun 3D (dirty, difficult and dangerous) jobs, said employers.

This is especially so in labour-intensive sectors, such as construction and agriculture, they told The Malaysian Insight.

Master Builders Association Malaysia president Foo Chek Lee said the construction industry pays foreign workers between RM2,500 and RM3,000, including overtime.

“It’s just that locals don’t like the construction industry. They don’t like to get dirty, they don’t like working in the sun and rain, so employers can’t hire locals at all,” said Foo.

Foo was commenting on the Malaysian Trades Union Congress’ (MTUC) proposal to raise the minimum wage to RM2,700 for 3D jobs, especially in urban areas. This is also the wage level recommended by Bank Negara in its 2017 annual report.

The minimum salary for locals would not be a problem, he said, given what foreign construction workers earn.

The construction industry pays about RM70 to RM80 per day with skilled workers getting up to RM100 to RM150.

Malaysian Vegetable Farmers’ Association president Tan So Tiok said the Kuala Lumpur wholesale market currently offers RM100 per day for its workers, but the take-up among locals remains low.

“Some vendors still can’t hire enough locals while some vendors lose their local hires after just one or two days.

“Those who work in the wholesale market don’t have to face the elements but you have to get up early, before dawn,” said Tan.

Workers at a vegetable farm can earn between RM2,000 and RM3,000 but, even at this rate, farmers still have trouble hiring locals due to the challenging working conditions.

Locals may be more willing to work on the logistics side but not on farms, as the work is physically demanding.

“It’s a big headache. Some foreigners who were originally hired could not come back to Malaysia after returning to their home countries (prior to the movement-control order), and now, we can’t recruit new foreigners. Yet, locals are reluctant to work in this field.”

The recruitment of foreign workers was frozen for the rest of the year to prioritise locals who have been retrenched during the MCO, Human Resources Minister M. Saravanan said recently.

In April, the Statistics Department reported unemployment soared to 5%, the highest in 30 years.

But the construction, agriculture and furniture-making industries are still finding it hard to fill vacancies.

Foo said the construction industry is extremely labour intensive and due to the Covid-19 pandemic, many construction sites have not been able to restart due to a labour shortage.

“If locals are interested, employers are definitely willing to hire, because the employer does not have to pay or deal with things like annual work-visa applications for foreign workers.

“However, locals are just not interested in such jobs.”

According to the Construction Industry Development Board (CIDB), 80% of construction sites have yet to resume operations as of last month, while the remainder could not restart due to the lack of cash flow and labour.

The furniture industry, however, will find it hard to adjust wages to attract local workers.

Malaysian Furniture Council president Khoo Yeow Chong said the minimum wage should be adjusted gradually rather than doubled immediately.

“In the furniture industry, foreign workers are paid RM1,200, and also get accommodation and other things. The costs come to about RM1,500 per person.”

The RM2,700 minimum wage proposal by MTUC would only be applicable to those in supervisory positions and the furniture industry would lose its competitiveness if wages were set at that level, he said.

“It’s no problem if you have experience, but if you are just general staff, you only earn between RM1,500 and RM1,800.”

Khoo also doubted whether locals are interested to join the sector even if wages are higher, as working conditions are tough, with factories having no air-conditioning and the environment being dusty.

In his experience, 80% of locals do not last.

The MTUC’s proposal to raise the minimum wage to RM2,700 for urban areas is based on the rationale that working conditions must also be improved. Together, higher pay and better working environments should attract locals.

MTUC said this was the case in countries like Singapore and Australia, where Malaysians are willing to do 3D work. – July 8, 2020.