A government ruling requiring at least 80% of the workforce in manufacturing companies to comprise locals by the end of 2024 is impossible to achieve. This is according to the Malaysian Employers Federation (MEF). There has been progress in meeting the target but it still remains very challenging. A review of the policy is required because it is not possible to achieve the 80% target any time soon.
For manufacturing employers to digitalise processes and automate production, there is a whole host of incentives that is needed. In 2016, the deadline was originally set for Dec 31, 2022.
Source: https://www.wikiimpact.com
It is easy to set a policy and suggest a deadline, but hard work is getting local workers to accept the change in job landscape. Many locals tend to seek out easier jobs, with air-conditioned environments and higher pay. Who wants dirty, difficult and dangerous jobs? Only foreigners! It is the same in other parts of Asia, Europe or America.
Federation of Malaysian Manufacturers (FMM) president said the new deadline would be achievable if industry and government worked hand-in-hand to increase dependence on technology. The FMM has been a strong supporter of a market-based levy mechanism and since 2009, been proposing the government introduce a multi-tier levy mechanism (MTLM) as a means to reduce the dependence on foreign workers.
Just take plantations, we have a shortage of labour. What innovations have been done to reduce labour force?
Or, look at restaurants, we rely on Bangladeshis, Indians or Sri Lankans for labour. We have seen robots being used but once the Government approves more foreign labour, the robots are sidelined. The process from taking orders, cooking, serving and finally payment could be fully automated. You may only need one or two persons per restaurant. Just create a few “model” restaurants and others will follow!
Reference:
Employers say 80:20 workforce ruling by end-2024 not achievable, Tsubasa Nair, FMT,
3 June 2023
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