Local entrepreneurs lament over new labour ruling
By Rosli Abidin Yahya

A number of local companies have reportedly been imposed with one-year labour quota validity instead of the usual two-year validity period, and the imposition has received mixed reactions as well as opposition from the local entrepreneurs.

This means that after a year, these companies must re-apply to renew their labour quota so they can keep on employing foreign workers in their workforce.

However, the new rules mean more work for local companies as they need to re-apply for such quotas after nine months, since all labour quotas must be renewed three months before their expiry date.

"My workers are currently under two-year contracts so when the validity of the labour quota was reduced to one year, it means all my foreign workforce must now sign one-year contracts.

"It will mean extra costs for the company because if my application for a number of workers would be reduced then my establishment has to fork out money to buy tickets for the rejected workers," said a local contractor.

The local contractor who is also subjected to a reduction of foreign workers was also facing problems since some of his workers who were currently vacationing in their home countries are about to return here.

"I would need to cut down my number of foreign workers as approved. Unfortunately some of these workers are on their way here and I have to send them home again after arriving. It will be heartbreaking news for some of them.

"I feel I should have been given time for my company to adjust to the new imposition," he said, adding that he needed all the workers to work for him in his firm.

He and other local entrepreneurs are pleading for a return to the old ruling whereby labour quotas are subjected to a two-year validity.

Courtesy of Borneo Bulletin