Firms paying TVET grads same wages as foreign workers, says Johari

Some companies are paying local technical and vocational education and training (TVET) graduates the same wages as foreign workers, undermining efforts to encourage more Malaysians to take up jobs currently held by migrant workers, says Johari Ghani.

The investment, trade and industry minister said some companies were also placing local workers in accommodation designated for foreign workers, forcing the graduates to pay rent to live outside the designated areas.

He said Malaysia had 2.6 million foreign workers and had yet to reduce that number as envisaged under the 13th Malaysia Plan.

Johari said this was partly because companies that had been operating in Malaysia for 10 to 20 years continued to rely on foreign labour, despite the country producing more than 400,000 TVET students and graduates who could take up these jobs.

“Unfortunately, some of these companies want to pay TVET graduates the same wages as foreign workers,” he said in the Dewan Rakyat.

He said even the increase in minimum wage to RM1,700 had made little difference as some employers continued to pay local TVET-qualified workers the same rates as foreign workers.

Johari said the problem stemmed partly from government policies, which he felt had been too flexible.

He said the government would no longer allow new licences for businesses seeking to establish operations similar to those of existing companies if they intended to hire foreign workers.

“If we continue allowing companies to hire foreign workers, the number will keep increasing,” he said.

Adding that the government was placing greater emphasis on TVET, he said his ministry and the Malaysian Investment Development Authority would explain the government’s policy to industries seeking to hire foreign workers.

“They can hire foreign workers, but only on the condition that those workers are employed for 3D (dirty, dangerous and difficult) jobs,” he said.