SHAH ALAM: International Trade and Industry Ministry and Malaysia Automotive, Robotics and IoT Institute (MARii) aim to phase out 70,000 foreign labours in the local vendors ecosystem by year end.
MARii chief executive officer Datuk Madani Sahari said the target would be spearheaded by Proton Holdings Bhd (Proton) and Perusahaan Otomobil Kedua Sendirian Bhd (Perodua).
“We (MARii) had discussions with Proton and Perodua to collaborate together in reducing foreign labour dependency for the local vendors supply chain.
“Proton and Perodua have about 200 companies involving in Tier 1 local vendors with a total of 40,000 foreign workers. If we can phase out foreign labour, it would create more employments for the locals,” he said at a press conference after signing a Memorandum of Agreement between MARii and Victorious Step Sdn Bhd, here yesterday.
Madani said the government has been phasing out between 32,000 and 35,000 foreign workers in the country from a period of 2014 to 2019.
“Previously, the local automotive sector employed about 110,000 foreign labours. Presently, we still have the remaining about 70,000 foreign workers in the local vendors ecosystem that supply parts and components for the original equipment manufacturers based in Malaysia,” he added.
He said there are about 220,000 workforce in the local vendor supply chain, working in 641 companies.
“We also have done cost-benefits-analyses on hiring local workforce would be more competitive and cheaper rather than employing foreign labours.
“Companies would have saved the cost for the foreign labours’ levy and passport/visa.
“Hence, it is more practical for the local automotive sector to recruit locals, creating more jobs,” he said.
Madani said all OEMs in Malaysia currently employ locals in their respective manufacturing facilities, particularly from Proton, Perodua, Toyota, Honda and Mazda.
To-date, MARii has partnered 439 local vendors since 2012, providing various customised programmes such as Automotive Supplier Excellence Programme (ASEP), MARii Industry4WRD Technology Platform (MITP), Automotive Industry Certification Engineering (AICE), and Industry Professional – Led Certification: Pengiktirafan Percapaian Terdahulu (IPC-PPT), serving as tools to enhance their business capabilities to meet current industry demands.