Malaysia bans foreign workers

Subject: Malaysia bans foreign workers Thu Jan 22, 2009 5:06 pm

KUALA LUMPUR - MALAYSIA has banned the hiring of new foreign workers in the manufacturing and services sectors amid fears the economic crisis will lead to more job losses for locals.

The government has also ordered companies to lay off foreign employees first if they must slash their work force, a Human Resources Ministry official said.

Home minister Syed Hamid Albar told the New Straits Times there was no reason to bring in foreigners after a human resources ministry report showed

45,000 people would be laid off over Lunar New Year at the end of the month.

'This is not the time for employers to ask for foreign workers. The first to be retrenched should be foreigners and not locals,' Mr Syed Hamid told the paper. 'There is no valid reason to bring in foreign workers at this time,' he added.

The government is preparing a second economic stimulus package following a US$2 billion (S$3 billion) unveiled last November to help companies and workers who have lost their jobs as a result of the global economic downturn.

The one million foreign workers currently in the two sectors will be allowed to work until their permits expire or they are laid off, according to the Star daily.

Malaysia - one of one of Asia's largest importers of labour - has an estimated 2.2 million foreign workers, who are the mainstay of the plantation and manufacturing sectors.

However, the government has become concerned about the ramifications of Foreigners currently working in both sectors can continue until their contracts expire or until they are laid off, but no new non-Malaysian workers will be approved, the official said.

'We want to make sure that all locals who have been (laid off) can get a new job,' said the official.

LNK

Malaysia bans foreign workers

Malaysia bans foreign workers

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