Should Malaysian glove makers prioritise hiring locals over foreign workers?

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Malaysian Glove Manufacturers Should Prioritise Hiring Locals for Sustainable Societal Benefit

Malaysian glove manufacturers are urged to prioritise hiring local workers over foreign labour as a more sustainable method for corporate activities to benefit society. This approach addresses the significant profits and share price increases experienced by the industry during the Covid-19 pandemic. While a windfall tax on these profits might seem like a straightforward solution, it could be short-sighted and deter future investment by creating an unstable regulatory environment. Instead, guiding the industry towards automation and the employment of Malaysians through an incentivised program offers a more constructive path forward.
An 'Automation + Malaysianisation' Programme

A proposed strategy involves implementing an 'automation + Malaysianisation' programme. This initiative would utilise both incentives, or a "carrot," to encourage the glove sector to adopt automation, and disincentives, or a "stick," to make the hiring of cheap foreign labour more expensive. The objective is to steer the industry towards creating tens of thousands of jobs for Malaysians within the next few years.
Job Creation and Wage Potential

This programme aims to generate significant employment opportunities for Malaysian citizens. The projected salary range for these newly created jobs is between RM2,500 and RM4,000. This focus on local employment ensures that the increased prosperity driven by the glove industry's success is shared more broadly within the Malaysian society, rather than primarily benefiting shareholders or having wages remitted abroad.
Mitigating Risks Associated with Foreign Labour

Relying heavily on a large foreign workforce presents inherent risks, as highlighted by recent events such as the Teratai cluster. This cluster impacted the operations and factories of a major glove-making company, underscoring the potential disruptions and challenges associated with managing an extensive foreign labour force. Prioritising Malaysian workers can help mitigate such operational and reputational risks.
Long-Term Economic Growth and Societal Contribution

Shifting towards less reliance on foreign labour and embracing automation is seen as a pathway to healthier economic growth for Malaysia in the long run. By creating better-paying jobs for locals, the manufacturing sector can contribute more meaningfully to the domestic economy, fostering a virtuous cycle that benefits the companies, their employees, and Malaysian society as a whole.

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Should Malaysian glove makers prioritise hiring locals over foreign workers?

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