Kopi Talk with MHO

Ministry tightens screw on unwanted foreign workers 

Creates real opportunity; Caps on influx of guest workers; Snips off retail shop branches; Imposes levy on employment of foreign workers 

    

BANDAR SERI BEGAWAN 26 MAY 2014: (BT) A decision to immediately revoke all unused foreign labour quotas has been made by the ministry of home affairs in its efforts to cap the influx of foreign workforce into the country.

The announcement was made last night by the minister Yang Berhormat Pehin Udana Khatib Dato Paduka Seri Setia Ustaz Hj Awang Badaruddin Pengarah Dato Paduka Hj Awang Othman who cited ministry findings that if used up, the 71,282 approved yet unused quotas will bring the population of foreign labour in the country to a staggering 183,541 people.

Several other policy changes have also been made in the ministry’s effort to tackle two distinct objectives namely overcoming unemployment by encouraging employers to hire local workforce and to control the influx of foreign labour by employing only as needed.

These changes which also include a levy on the employment of foreign labour for the several sectors will systematically take effect by the end of June this year.

These policy changes are:

• to continue freezing the issuance of foreign labour quota for posts such as cashiers, driver, supervisors, salesclerk, shop staff, butcher, baker as well as taking steps to freeze foreign labour quota for those in the wholesale and retail industry, hospitality, ict, support services and so on.

• Reduce the numbers for foreign labour quota upon renewal.

• Limit the issue of new miscellaneous business license identified as branch out with the exception of businesses with the potential to attract local employees

• Limit the number of new licenses for conventional restaurants ( coffee shops, food outlets)

• Not issuing licenses to businesses established in residential areas/ villages unless the business is personally run by the applicant or locals.

According to the minister, the any application to reclaim these quotas will be considered accordingly as per regulations under the policy changes.

The ministry will also provide the necessary assistance to employer or companies that are clearly facing huge difficulties in the in implementation of this policy, said the minister.

In its efforts to maintain a fair and equal balance in the welfare of both foreign and local workforce, the ministry together with the Labour Department and APTK has conducted studies that tackle the issues of balance in the salary and benefits packages for both foreign and local employees, the preference for foreign workers and why locals do not last long working for the private sector.

Studies show that in terms of salary according to posts and sectors, the packages for both local and foreign are almost at par with the exception of the benefits package such as allowances, housing, food, and so on which tend to favour foreign workforce more.

Introducing these policy changes will hopefully address the issues as well as provide for a more conducive working environment, noted the minister.

With these changes, “We and when I say we I mean the ministry and employers in the private sector can work together to come up with the best solution for these issues and improve efforts to train local employees according to the existing training schemes,” said the minister/.

There is always room for improvement for the existing scheme (SLP), said the minister, “such as submitting their (employers) localization programmes to the APTK and Labour Department for it to be implemented through providing on-the-job training for locals.”

Hopefully we will be able to maintain balance and harmony in the workforce, said the minister.