“And that’s just for employers of minimum wage workers,” he adds. The freeze also exacerbates the new Employment Act’s reduction of weekly working hours from 48 to 45, which SME Association of Malaysia national president Ding Hong Sing estimates has saddled small and medium enterprise (SME) employers with a collective RM1.508 billion in additional overtime payments per month at least. However, another freeze disrupts business activity and planning, for instance, spelling uncertainty for employers on how to deal with incoming orders in the coming quarters.
They explain that since the economic reopening last year, businesses want to be “cautiously optimistic about their outlook” because many are not out of the woods yet. The abrupt decision has come at a time when businesses are still getting back on their feet after the prolonged setbacks from the Covid-19 pandemic, while battling other economic challenges.īut perhaps more to the point, the situation has cast the spotlight on what appears to be a grave mismatch between the country’s limit for foreign workers and the reality of business operations and growth.īusiness groups that The Edge spoke to last week have articulated the operational and financial obstacles impeding the complete recovery of businesses. THE Ministry of Human Resources’ (MoHR) indefinite freeze on permits for foreign workers, as announced on March 18, has been disruptive for industry players.
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