PUTRAJAYA: Tighter labour laws are on the cards as the government strives to rely more on local manpower, Human Resources Minister Datuk Dr S. Subramaniam said yesterday.

He said amendments would be made to the Employment Act 1955 and Workmen's Compensation Act 1952.

Employers would soon have to exhaust all local avenues for labour before notifying the ministry of their intention to hire foreign workers.
This must be done a month prior to submitting their application for foreign workers so that it gives the ministry time to offer them a list of registered local workers.

To protect the welfare of foreign maids, the government will lift the exemption on workmen's compensation insurance for them.

It is now compulsory to provide insurance to all foreign workers, with the exception of foreign maids.

"Previously, the exemption was made on the presumption that employers would automatically take care of their maids.

"But now we are making it compulsory."

Suppliers of foreign workers, including outsourcing companies, must also be registered with the ministry so that contract workers can be monitored.

These companies, Dr Subramaniam said, would only be allowed to bring in the exact number of workers required by local employers.

The government is also working with the International Trade and Industry Ministry to make sure that foreign companies interested in operating in Malaysia hired locals.

"Once they have shown a serious interest, during the interim period until they start operations, we will help in identifying the number of workers the industry requires and the skills needed.

"In the interim period of about two years, we can train workers with the skills required.

"When they start, we will have a pool of local workers who have been trained according to their requirements."

Dr Subramaniam, who earlier met Home Minister Datuk Seri Syed Hamid Albar on the issue of foreign workers, said the government wanted to reduce their numbers from 2.2 million to 1.8 million by 2010.

Syed Hamid, meanwhile, said the database from his ministry would be matched with that of the Human Resources Ministry so that locals registered with the Labour Department could be channelled into the job market.