Malaysia is one of Asia's biggest employers of foreign labour. But recently, cases of deaths, abuse and forced labour have come to light. What is going on? Who is protecting these migrant workers?
BY SHAZWAN MUSTAFA KAMAL
KUALA LUMPUR, Nov 17 — Despite high company profits, the growth in salaries of Malaysian employees is less than the growth in productivity, Khazanah Research Institute (KRiS) said today in a report on households.
The “State of Households Report” stated that the low wages could be partly attributed to a “relatively low-educated workforce” — where jobs with the highest pay (high skills) absorbed the least number of workers compared to low-paying jobs such as in the service and sales sectors.
The report cited 2013 data from the Department of Statistics (DoS) showing that only 2.5 million highly-skilled employees (all Malaysians) compared to 6.6 million low-skilled workers (Malaysians and migrant workers).
Only 24 per cent of the total Malaysian workforce are educated beyond Form 5, and 10.4 per cent from these were degree holders.
The Khazanah Research report also quoted 2013 Ministry of Education (MOE) findings which showed that “one out of six children do not get to Form 4” and the large majority of those that do, do not make it past secondary school.
“Unless we train our workers so that they can have high-income jobs, we will continue to have income and wealth inequality.
“If we do not improve the skills of our workforce, we risk being overtaken by less developed countries who can offer the same skills as us but at far lower costs,” KRiS managing director Datuk Charon Mokhzani said today.
The Khazanah research report also estimated that in 2013, less than 23.8 per cent (RM5.6 billion) of the country’s entire fuel subsidy went to households while the remaining RM17.9 billion went to businesses and corporations.
It also said that less than 30 per cent (RM4 billion) of gas subsidy (through Petronas) went to households while the remaining RM16 billion went to businesses and corporations.
“Our subsidy system needs reform and we should use BR1M (Bantuan Rakyat 1 Malaysia) more.
“Our most expensive subsidy is the energy subsidy which is regressive and favours businesses over households, and rich households over poor ones,” Charon added.
Source: The Malay Mail Online
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