THE statement by Hindraf 2.0 that it wants Putrajaya to reconsider its decision to reintroduce the foreign worker placement scheme, claiming that this
would come at the expense of jobs for poor Indians, is myopic and ethnically inclined rather than addressing foreign worker issues.
It is irrational to address the issue of jobs on a policy related to foreign workers when an industrial policy related to human capital development and technology is vital to address the overdependence on foreign workers.
The scheme, which was suspended in 2017, was introduced due to the complaints about labour shortage.
Under this scheme, companies can apply for a replacement once it is confirmed their foreign staff have left the country, instead of having to start a new application.
This scheme by itself has no issue unless it is abused to recruit more foreign workers.
Non-governmental organisations, such has Tenaganita, have suggested companies use undocumented workers who have registered under the rehiring programme more than a year ago and who were detained, which makes more sense.
Nevertheless, the government’s decision was a practical response to an issue that has economic ramifications.
The real issue here is not about a community being sidelined, but a social economic structure that is unbalanced and tilted towards capitalists.
According to the Bank Negara Malaysia 2018 annual report, Malaysian workers received lower compensations relative to their contribution to national income from productivity and equity perspectives.
Citing an example, if a Malaysian worker produced output worth US$1,000 (RM4,200) he would be paid US$340.
The corresponding wage received by a worker in advanced benchmark economies for producing the same output was US$510.
This is due to technological and human capital development in these countries.
Overdependence on cheap foreign workers does not affect only the Indian community, but
also other communities in the Bottom 40 household income group.
There is also the issue of skilled workers leaving their countries over low wages, while foreign countries pay better wages for jobs that are routine, dirty and dangerous.
The skill dimensions of these jobs are valued in those countries.
In Malaysia, there is no illustration of what constitutes a skilled job for all categories of work, and how much skilled workers should be paid.
This is a structural problem that needs a long-term solution from the government.
Therefore, it is vital that organisations like Hindraf work with other communities in helping the government reform the industrial and cultural order that is tilted in favour of capitalists who desire cheap labour.
We need to address the industrial imbalances from a Malaysian perspective rather than a communal perspective.
RONALD BENJAMIN
Executive secretary, Association for Community and Dialogue, Ipoh, Perak