6th Mar 2024: Malaysian government halts foreign worker entry into the country from 31st May 2024 (final calling visa/VDN approval issuance deadline 31st March 2024) as migrant worker management crisis worsens and victims of gross exploitation, unemployment and destitution rise significantly
A hard stop halt to all migrant/foreign worker entry into Malaysia has been announced by the Malaysian government, effective from 31st May 2024.
This is evidence, in my opinion, of a worsening and chaotic migrant worker management crisis engulfing the country in all areas and in its foreign worker labour intensive export sectors and lower tier supply chains.
The levels of exploitation, forced labour and human trafficking have seemingly been rising uncontrollably in Malaysia since the Anwar administration took power in late 2022.
Anwar’s administration promptly at the end of 2022 and into early 2023 loosened all the checks and balances on hiring foreign workers and bringing them into the country, on the premise of kick starting the economy and addressing labor shortages after after COVID-19.
Checks to ensure genuine employment opportunities were available for foreign workers being brought into Malaysia for specific employers were removed by the Malaysian government.
A requirement on checks to ensure employers seeking foreign worker quotas had compliant and satisfactory accommodation for workers that would be brought in was bypassed.
The speed of foreign worker quota approval by the Malaysian government authorities was dramatically reduced.
At that time in early 2023, I sounded the alarm that this probably wouldn’t end well. Rampant and systematic corruption didn’t go well with a loosening of checks and balances meant to ensure foreign worker welfare was prioritized and national, economic and human security equally balanced.
See 13th Feb 2023: My Perspective published by FMT – ‘Time to address corruption in Malaysia’s migrant worker management’
I expect a considerable impact that is likely to stem from this official decision to halt migrant worker entry into the country on global supply chains sourcing from the migrant labour intensive sectors in the country very soon.
All immigration VDN (calling pass visa approvals) for foreign workers must be applied for at Malaysian immigration authorities by 31st March 2024, with employers then having two months to ensure foreign worker arrival and entry into the country before 31st May 2024.
Then a total migrant worker freezeby the Malaysian government. No more foreign workers are allowed into the country. No exceptions. And no future plan!
Some employers that are a significant part of global supply chains, that previously expected many more months to utilize their existing migrant worker quotas (sometimes numbering 1000s of foreign workers for whom several million Malaysian RM has already been paid in levy and quota approval costs) through fresh worker recruitment, are now rushing to recruit workers from source countries prior to the 31st March deadline. Business associations have issued statements of protest (see reports below).
If companies don’t bring foreign workers in now, even if they don’t actually need them and accomodation or production lines are not ready for them, who knows when they will next be able to do so legally.
So the risks of unethical, illegal recruitment and cutting corners to meet the short timeline for possibly unplanned recruitment raise risks that recruited workers, already so vulnerable, could fall victim again to unscrupulous recruitment intermediaries and unethical recruitment agencies, and become jobless and destitute on arrival, if their recruitment processes are not managed safely, ethically and legally.
Yet the decision to halt the arrival of more foreign workers into the country is not at all surprising.
The Malaysian Immigration Minister himself announced back in November 2023 that somehow, the Malaysian government was overwhelmed with an estimated 250,000 foreign workers who are apparently unemployed in the country, far in excess of market needs.
Many of whom are surely forced labour, human trafficking or labour exploitation victims also.
Key background reading on how this migrant worker management crisis evolved:
1. 19th Oct 2023: Malaysia facing huge excess of 1/4 million migrant laborers
2. 20th Oct 2023 Malaysiakini: Long-awaited foreign worker management report declassified in Malaysia (my comments added)
3. 11th Mar 2023 MALAYSIAKINI: Malaysian HR Minister Sivakumar – Zero checks for migrant quota approvals only until March 2023
4. 10th Jan 2023 The Vibes: ‘Bangladeshi recruitment cartels’ grip must end’ – Govt now acting on billion-ringgit ‘human trafficking syndicates’
5. 1st Oct 2022 Malay Mail: PM Anwar says Putrajaya to Ease Rules on Hiring Migrant Workers
6. 7th July 2022 The Vibes: How Bestinet courted controversy over migrant worker recruitment – MACC’s raid on IT company once again casts spotlight on alleged hiring monopoly
This significantly excess foreign workforce is partly due to an uncontrolled, non transparent and systemically corrupt foreign worker management recruitment system, a failure by the Malaysian government, that since mid 2022 has also seen 100,000s of Bangladeshi workers recruited by a criminal syndicate trafficking them for forced labour in Malaysia who are currently destitute and unemployed.
More than an estimated 600,000 (albeit it could be as high as 2,500,000 according to some estimates) foreign workers without proper papers have now been urged to return to their home countries from Malaysia without facing legal action under a migrant repatriation programme from March 1 to December 31 2024, the minister of home affairs, at the Malaysian government, said at a press conference in Putrayaja on 1st March 2024.
I recently expressed deep concern about this programme and its potential impact on 100,000s of already vulnerable victims of forced labour, human trafficking and labour exploitation in the country.
Below are a few recent stories on this important development about the official halt in foreign workers entering into Malaysia, a Malay and translated version of the official announcement alongside other sources of relevant material and links. Finally a lot of background material in contained in this post.
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See also: 9th March 2024: Sourcing migrant workers takes time, ‘not like buying cattle’, employer groups tell govt
See also: 8th March 2024: May 31 deadline for foreign workers recruitment under recalibration programme remains, says Saifuddin
See also: Malay Mail 8th Mar 2024: Saifuddin Nasution: No more agents for Bangladeshi worker recruitment
FMT 6th Mar 2024: Industry players shocked by foreign worker policy change by Malaysian government, says FMM
The Federation of Malaysian Manufacturers slams the Malaysian government for failing to consult stakeholders about the ‘sudden and hasty’ move.
Original Source: FMT by FMT Reporters – 6th March 2024
PETALING JAYA: The home ministry’s sudden change to its foreign worker policy has caught industry players by surprise, the Federation of Malaysian Manufacturers (FMM) said today.
FMM president Soh Thian Lai described the move giving employers until March 31 to obtain visas for migrant workers, or have their quotas cancelled, as “sudden and hasty”.
Employers also have until May 31 to bring these migrant workers into Malaysia under the unused quotas once the visas are granted.
Soh said this would leave manufacturers unable to meet manpower requirements, adding that some firms had planned their migrant worker intake in stages according to their project schedule.
He said the decision could lead to cancelled job orders or financial penalties for the late delivery of orders due to the manpower shortage.
“Many manufacturers with active quota balances had either delayed the process of bringing in the workers due to the softening of the market, or staggered the worker intake over the 18-month quota validity period to coincide with their peak production period.
“Allowing only one month for employers to get the calling visas issued would be a near impossible timeline as there is a long process involved.
“It starts with the job order approval at the source country, then the worker interviews and selection, passport issuance and medical check-ups before the employer can apply for the calling visas,” he said in a statement.
The FMM president expressed disappointment at how the policy change was decided without consulting stakeholders.
He added that the Malyasian government’s focus on meeting the 12th Malaysia Plan’s targeted number of foreign workers by 2025 did not consider the industry’s need for workers.
“We appeal to the Malaysian government to immediately convene a stakeholder engagement to understand the situation on the ground, and to reconsider the policy implementation by extending the timeline by six months until September 2024,” Soh said.
Last week, home minister Saifuddin Nasution Ismail reportedly said that active foreign worker quotas would be voided if calling visas, also known as visas with reference, were not issued by March 31.
He also said that from June 1, Putrajaya would not allow foreign workers into the country under these active quotas. Employers who paid the levy for scrapped quotas will be refunded.
6th March 2024: The Edge: Foreign worker intake deadline changes will leave manufacturers in the lurch, says FMM
Original Source: The Edge Malaysia By Surin Murugiah
KUALA LUMPUR (March 6): The Federation of Malaysian Manufacturers (FMM) said it was caught by surprise on the latest changes to foreign worker policy.
In a statement on Wednesday, FMM president Tan Sri Soh Thian Lai said the sudden decision to cut short the quota validity period for those still having active quota balance with just one month’s notice and to cancel all active quotas after March 31, 2024 would be most damaging as the sector has shown signs of business recovery in the second half of 2023 and is anticipated to gain momentum in the first half of 2024.
Soh said the sudden policy change will leave many manufacturers in the lurch in meeting their manpower requirements, especially those who have planned their worker intake in stages according to their job order schedule.
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He said many of those with active quota balance had either delayed the process of bringing in the workers earlier due to the softening of the market or had staggered the worker intake over the 18-month quota validity period to coincide with their peak production period.
“Industries will now find themselves being unable to cope with their job orders due to the inability to bring in workers as planned, which may lead to having to cancel job orders or be subjected to financial penalties for late delivery or failure to meet confirmed orders.
“The industry finds that the timelines announced under the policy change where employers have to apply for the Calling Visa/Visa Dengan Rujukan (VDR) by March 31, 2024 and ensure entry of the workers by May 31, 2024 as very restrictive and were decided hastily without any consultation and understanding of the actual time frame it takes in reality for employers to mobilise the workers,” he said.
Soh said that allowing only one month for employers to get the calling visa issued would be a near impossible timeline as there is a long process involved, starting with the job order approval at the source country, worker interview and selection, passport issuance and medical check-up before the employer can apply for the Calling Visa.
“The process on average can easily take up to more than 2.5 months,” he said.
Read also:
NCCIM urges govt to reassess decision to bring forward foreign worker intake deadlines
Home Ministry says unused quotas to hire foreign workers to be cancelled
NST 6th Mar 2024 ECONOMY
FMM: Sudden change in foreign worker policy leaves industry in limbo
Original Source: The Straits Times by Sharen Kaur – 6th March 2024
KUALA LUMPUR: The Federation of Malaysian Manufacturers (FMM) says a sudden shift in foreign worker policy could disrupt the positive trajectory in the manufacturing sector.
Tan Sri Soh Thian Lai, the president of FMM, said the federation expressed concern regarding the potential repercussions and economic impact of terminating all active quotas effective March 31, 2024.
He said this decision has taken industry players by surprise, especially when the sector is expecting to see pick-ups in sales, production, capital investment, and hiring.
Soh emphasised that the abrupt and hurried nature of cutting short the validity period of quotas, along with providing only a one-month notice, and halting the entry of workers under active quota balances into the formal sector from June 1, 2024, could have severe detrimental effects.
He said that the manufacturing sector has exhibited signs of recovery in the latter half of 2023 and is expected to continue gaining momentum in the first half of 2024.
“The sudden policy change will leave many manufacturers in a lurch in meeting their manpower requirements, especially those who have planned their worker intake in stages according to their job order schedule.
“Many of those with an active quota balance had either delayed the process of bringing in the workers earlier due to the softening of the market or staggered the worker intake over the 18-month quota validity period to coincide with their peak production period.
“Industries will now find themselves unable to cope with their job orders due to the inability to bring in workers as planned, which may lead to having to cancel job orders or be subjected to financial penalties for late delivery or failure to meet confirmed orders,” he said in a statement.
Soh said that FMM is disappointed that the Malaysian government’s focus or rationale for implementing the policy change is to meet the targets set for the number of foreign workers in the country of not more than 2.4 million by 2025 under the 12th Malaysia Plan.
He claimed that no consideration was given to the actual labour requirements of industry at the current juncture.
He said that the industry finds that the timelines announced under the policy change, where employers have to apply for the Calling Visa/Visa Dengan Rujukan (VDR) by March 31, 2024, and ensure entry of the workers by May 31, 2024, are very restrictive.
According to Soh, this was decided without any consultation or understanding of the actual timeframe it takes, in reality, for employers to mobilise the workers.
“In this regard, we appeal to the Malaysian government to immediately convene a stakeholder engagement to understand the situation on the ground and to reconsider the policy implementation by extending the timeline by six months until September 2024 to allow employers to apply for the Calling Visa/VDR and arrange entry of the workers,” he said.
Soh said that this would give employers the actual workers needed and sufficient time to mobilise new workers under their active quota balance.
He said that allowing only one month for employers to get the calling visa issued would be a near-impossible timeline as it involves a long process, starting with job order approval in the source country, worker interview and selection, passport issuance, and medical check-ups, before the employer can apply for the calling visa.
Edge 5th Mar 2024: NCCIM urges govt to reassess decision to bring forward foreign worker intake deadlines
Original Source: The Edge Malaysia By Chester Tay
National Chamber of Commerce and Industry of Malaysia president Tan Sri Soh Thian Lai says the abrupt cancellation poses a risk of causing substantial disruption to businesses, particularly in sectors that rely heavily on foreign labour, such as the manufacturing, construction, agriculture and plantation industries. (Photo by Shahrill Basri/The Edge)
KUALA LUMPUR (March 5): The National Chamber of Commerce and Industry of Malaysia (NCCIM) has urged the Malaysian government to reassess the decision to bring forward deadlines for bringing in foreign workers into the country, to avoid disruption to recruitment plans by businesses.
The NCCIM’s appeal came after the Immigration Department’s recent announcement of changes in the regulations on the management and intake of foreign workers. Among others, employers with an active quota for foreign workers are now required to bring these workers into the country by May 31, a shift from the previously set deadline of Sept 30.
The department will also cancel unused foreign worker quotas by March 31.
NCCIM president Tan Sri Soh Thian Lai said in a statement on Tuesday the abrupt cancellation poses a risk of causing substantial disruption to businesses, particularly in sectors that rely heavily on foreign labour, such as the manufacturing, construction, agriculture and plantation industries.
“There is a palpable concern among employers who have fulfilled their financial obligations by paying the levy, but are not able to receive the visa with reference by March 31, 2024. The lack of clarity on whether there will be a refund for these levies only adds to the growing uncertainty,” he said.
Soh said the decision places a “considerable strain” on businesses, leading to potential delays and disruptions in ongoing and upcoming projects due to the unavailability of foreign workers.
“The industry is also faced with the dilemma of what happens to workers scheduled to arrive after May 2024, leaving them in a precarious position without employment,” he said.
Soh said the rescheduling of the deadline to bring in foreign workers into the country by May 31 had created a sense of urgency, compelling employers to navigate through immigration processes that remain unclear.
“This sudden shift disrupts meticulously planned business operations, necessitating a rapid and often unfeasible adjustment,” he said.
Soh said the repercussions of these announcements extend beyond individual businesses, potentially impacting the broader economy and the country’s ability to attract and retain foreign investment.
Therefore, he said the NCCIM proposes that the original deadline of Sept 30 be maintained to provide businesses with adequate time to comply with the regulations.
“Furthermore, we advocate for a consultative approach involving key industry stakeholders before the implementation of significant policy changes. This would ensure that any future quotas are aligned with the actual needs of various sectors, thereby mitigating potential disruptions.
“Looking ahead, the NCCIM is also seeking clarification on the Malaysian government’s plans beyond the deadline for the recruitment of foreign workers. Businesses must have a clear understanding of future regulations and policies to effectively plan and adapt their operations,” said Soh.
The NCCIM president said the chamber is committed to working collaboratively with the Malaysian government to find a balanced solution that supports the growth and sustainability of businesses while meeting the regulatory requirements for managing foreign workers.
“We strongly believe that through constructive dialogue and cooperation, we can achieve outcomes that are beneficial for both the industry and the country,” he said.
Read also:
Home Ministry says unused foreign worker quotas to be cancelled
1st March 2024: Malaymail – Saifuddin reminds employers to get their foreign worker affairs in order before March 31
Original Source: Malaymail – By R. Loheswar – 1st March 2024
PUTRAJAYA, March 1 — Home Minister Datuk Seri Saifuddin Nasution Ismail is urging all employers with foreign workers to get their affairs in order before March 31 as the migrant repatriation programme ends then.
He said those who haven’t paid their levy, fines or compounds for overstaying, have no documents or are here illegally will then be subjected to the full measure of the law and eventually repatriated to their home country.
“Migrant workers without papers and documents working in the formal sector who have paid their levy but haven’t received their Visa with Reference (VDR) will have their visas cancelled and the quota returned to the employer.
“The last day to apply for foreign help in the formal sector is May 31 this year, after that it’s closed. In order to facilitate the smooth transition and speed up the processes in this space, we have now reduced the time for processing a refund of levies from 53 to 28 days for approval from the Immigration Director General and from 77 to 38 days for approval from the state secretary,” he said.
In addition, he said the repatriation programme as of 12pm today was 848 illegal immigrants who came to the Immigration department to take this opportunity to return home. He thanked the Nepal and Indonesian embassies for aiding in the repatriation programme.
“One important thing I want to point out here is that this entire process of repatriation will be done without agents. We won’t entertain any agents or middlemen. You won’t need any,” he said.
The repatriation programme permits the return of illegal foreigners after they have resolved fines for diverse immigration offences, such as overstaying and entering Malaysia without valid documents.
1st March 2024: The Edge – Home Ministry moves to free up foreign workers quota, unused allocations to be cancelled from June 1
Original Source: The Edge by Syafiqah Salim – 1st March 2024
PUTRAJAYA (March 1): The Home Ministry has decided to free up the quota for hiring of foreign workers, which was frozen since March last year, by cancelling allocations given that were not used starting from June this year, according to its minister Datuk Seri Saifuddin Nasution Ismail.
This means that the Malaysian government will no longer allow the entry of foreign workers into the formal sector with active quotas, effective June 1.
At a media briefing, Saifuddin said the active quota for hiring foreign workers, for which levies have been paid but visas with reference (VDR) have not been issued by the end of March, will be nullified.
However, it is unclear at this juncture if the freed-up quota will be immediately available for application.
Meanwhile, employers will get their levy refunded from their cancelled quota, said Saifuddin. So, the deadline for entry of new formal sector foreign workers with VDR is May 31.
“I urge all relevant employers to expedite the entry of foreign workers while ensuring compliance with the terms and labour laws set by the Malaysian government,” he said.
The move came after Saifuddin announced in end-January that the Cabinet had decided to keep its freeze on the application and approval for foreign workers quota, as it felt the quota that allows the hiring of foreign workers was already sufficient to meet the country’s workforce needs.
This was despite urgings from the private sector to lift the ban, citing major losses due to labour shortage.
Just two days ago, Plantations and Commodities Minister Datuk Seri Johari Abdul Ghani cited the ban on foreign workers quota as he lamented in Parliament that the palm oil industry lost up to RM7.9 billion in exports value last year due to a shortage of 40,000 workers.
Saifuddin, meanwhile, said the Malaysian government is making significant improvements to the levy repatriation policy and process.
He also noted that the duration for processing levy refunds at the immigration director general’s approval stage has been cut by 47%, and takes only 28 days now compared to 53 previously.
Simultaneously, the processing time at the Home Ministry secretary general approval stage has halved to 38 days instead of 77 days.
“Employers will also be allowed to claim a refund of foreign worker levy payments after a period of six months from the effective date of the conditional approval letter, with the entire balance of the foreign worker quota returned to the Malaysian government,” Saifuddin added.
Read also:
Freeze on new foreign worker applications extended, says Saifuddin
BACKGROUND READING
Mar 5 2024: NCCIM urges govt to review unused foreign worker quota deadline
FMT 3rd Mar 2024: Ensure ‘crooks’ do not gain from repatriation programme, says activist
Mar 2nd 2024 The Star: A chance for illegals to go home
Mar 2nd 2024 The Star: Sarawak immigration extends RTK2.0 until June
Mar 1st 2024 FMT: 600,000 foreign workers urged to take easy exit home
Mar 1st 2024 The Star: Use repatriation programme to return home, 600,000 illegals told
Feb 28th 2024 The Star: New programme lets migrants off the hook without being prosecuted
Feb 25th 2024 The Star: Businesses want foreign worker hiring freeze lifted
Jan 31st 2024 NST: Govt to implement Migrant Repatriation Programme starting March
Jan 31st 2024 The Edge: Cabinet agrees to extend freeze on hiring of foreign workers, says home minister
31st Jan 2024 FMT: Migrant repatriation programme set for March 1
31st Jan 2024 The Star: Migration Repatriation Programme to commence on March 1, says Home Ministry
RTV Online 1st Mar 2024: Expatriates die without getting work in Malaysia (google translate)
27th February 2024: SCMP – Malaysian firm probed for human trafficking after 93 Bangladeshi workers found abandoned
26th Feb 2024: Statement by Independent Migrant Worker Rights Specialist Andy Hall on Joint KDN, KSM and MAPO Operation to Rescue More Destitute and Stranded Victims of the Alleged Criminal Syndicate Trafficking Workers from Bangladesh for Forced Labour in Malaysia (includes updated stories on the ‘Cheras’ case)
Business Standard 18th Feb 2024: Bangladeshis pay much higher than peers (US$4500++) to reach Malaysia job market – syndicates, impunity and systemic forced labour
Malay Mail 8th Feb 2024 – Activists: Duped Bangladeshi workers in Malaysia sought RM2m in unpaid wages, but only got half(first reported compensation settlement for Bangladesh Malaysia organised crime syndicate victims being trafficked for forced labour in Malaysia)
6th February 2024: Benar News – Malaysian Labor Court orders employers to pay Bangladeshi workers RM1 million in unpaid wages – first reported compensation settlement for Bangladesh Malaysia organised crime syndicate victims being trafficked for forced labour in Malaysia
FMT 6th Jan 2024: 171 duped migrant workers deserve compensation, govt told (includes my full statement)
5th Jan 2024: New Strait Times – MCA: Don’t just fine employers, hold ministry accountable as well for unemployed foreign workers
FMT 30th Dec 2023: Migrants being duped into Malaysia because of govt’s failure to curb criminal trafficking syndicates and organised crime network, says activist Andy Hall
30th Dec 2023: New Strait Times – Recruitment agencies accused of deception as Bangladeshi victims speak out on exploitation and fear
29th Dec 2023: Malay Mail – Set up probe on exploitation of migrant workers and new ministry to manage their affairs, Suhakam tells Putrajaya
28th Dec 2023: FMT – Malaysia has entered ‘slave labour’ territory, says ex-MP – Charles Santiago calls for specific set-ups to manage migrant workers
27th Dec 2023: New Strait Times – MTUC demand govt, MACC probe into corrupt recruitment practices of foreign workers
26th Dec 2023: FMT – High recruitment fees make greedy agents bring in workers, says group
25th Dec 2023: FMT – Probe recruitment agents, MACC told after arrest of Bangladeshis
22nd Nov 2023: MALAYSIAKINI – Full probe of migrant worker syndicate, Malaysian HR Minister Sivakumar says
9th Nov 2023: Malaysia – The State of the Nation: Flaws of foreign worker system laid bare in declassified report
30th Oct 2023: FMT: Andy Hall refers stranded Bangladeshi workers’ plight in Malaysia to UN Human Rights Council
20th Oct 2023 Malaysiakini: Long-awaited foreign worker management report declassified in Malaysia (my comments added)
19th Oct 2023: Malaysia facing huge excess of 1/4 million migrant laborers
21st Sep 2023: Malaysian government has 15 source countries for foreign workers – Comments by Andy Hall
20th Sep 2023: Rate of abused Bangladeshi workers’ entry into Malaysia worrying, says migrant rights activist Andy Hall
Aljazeera News TV 10th July 2023 – Migrants in Malaysia: Hundreds left stranded in recruitment scam
Reuters 11th Apr 2023: In Malaysia, migrants say they are in limbo after promised jobs fall through
25th April 2023 Sarawak Post: Malaysia And Modern Slavery – ‘PM Must Take Control’
23rd April 2023: REUTERS: Malaysia probes cases of migrant workers left jobless, without passports (with background summary and articles included in my blog post)
17th April 2023 Daily Star: Approval For Labour Recruitment – Malaysia’s transparency questioned by Bangladesh
FMT 13th April 2023: Stranded Bangladeshis endure ‘hell’ in Malaysia – The group of 35 now wants to go home after being left without jobs for months
11th Mar 2023 MALAYSIAKINI: Malaysian HR Minister Sivakumar – Zero checks for migrant quota approvals only until March 2023
13th Feb 2023: My Perspective published by FMT – ‘Time to address corruption in Malaysia’s migrant worker management’
10th Jan 2023: ‘Bangladeshi recruitment cartels’ grip must end’ – Govt now acting on billion-ringgit ‘human trafficking syndicates’
1st Oct 2022 Malay Mail: PM Anwar says Putrajaya to Ease Rules on Hiring Migrant Workers
7th July 2022 The Vibes: How Bestinet courted controversy over migrant worker recruitment – MACC’s raid on IT company once again casts spotlight on alleged hiring monopoly
June 2022 The Star: Human Traffickers made RM2 billion through syndicate smuggling in over 100,000 workers from Bangladesh
