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Industries laud deferment of 80:20 worker ruling

FMM In The News: THE STAR, KUALA LUMPUR, Tuesday, July 19, 2022 - The decision to defer the implementation of the 80:20 ratio for local to foreign worker quota in the manufacturing sector will certainly provide a relief to the business community, says a group of industry players.

In a joint statement, industry players comprising 51 industry organisations, trade associations and chambers of commerce lauded the decision by the International Trade and Industry Ministry for the two-year deferment of the ruling since the lifting of the freeze on foreign worker recruitment from Feb 15, 2022, Bernama reported.

It said the business community, either directly or indirectly, has been impacted by the 80:20 ruling as manufacturers as well as their suppliers, vendors, contractors and customers are all part of the supply chain that ultimately affects the consumers.

“The imposition of this ruling has impacted the ability of our industries to meet their sales orders and obligations as part of the global supply chain.

“It has significantly affected the ability of industries to ramp up operation capacity as well as expand operations to meet increasing global demand,” said Federation of Malaysian Manufacturers president Tan Sri Soh Thian Lai on behalf of the business community.

Labour shortages have led to companies experiencing delays in fulfilling delivery of goods, huge backlogs, loss of existing customers and loss of potential business, he said.

“Businesses are also currently under tremendous pressure to contain increasingly challenging high operating costs, given the rising inflationary pressures.”

The business community also reiterate that the process to reduce dependency on foreign workers through automation is already taking place, but it is a gradual process that must continue to be supported by the government

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