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Foreigner influx in M'sia consequence of decades-old actions: Rafizi | Scoop
The raid on migrant hotspot Jalan Silang last Thursday has brought and increased spotlight on the issue, with Economy Minister Rafizi Ramli being the latest to chime in with his diagnosis of the underlying problems that lead the nation to this point. – Abdul Razak Latif/Scoop pic, December 25, 2023
News

Foreigner influx in M’sia consequence of decades-old actions: Rafizi

Minister says government is crafting policies to address underlying issues, but it will take time to get right

Scoop Reporters
Updated
2:03 PM MYT

 

KUALA LUMPUR – The influx of foreigners ‘conquering’ an area is a consequence of actions taken decades ago.

In a post on X (formerly Twitter), Economy Minister Rafizi Ramli said problems involving foreign workers arose when the country had to rely on foreign manpower to address shortages in specific sectors.

“It began with our dependence on foreign workers. Ask employers; they would say that our people no longer want to work in certain industries.

“Salary payment is also one of the reasons, but with the minimum wage in place now, the remuneration package is more competitive than before.

“What’s happening now is the effect of decades ago. When there are many foreign workers, Malaysians tend to rent out their licences for them to start businesses. This is called the Ali Baba method,” he added.

The proposed Anti-Ali Baba law is among measures being taken by the Economy Ministry to prevent foreign workers from illegally operating businesses in the country, he said.

Rafizi said this law will synergise with the ongoing labour market reforms and finalisation processes for the upcoming Malaysia Plan (MP).

“Among the measures taken in reforming the labour market are progressive wages, Academy in Industry programmes, and finalising the phasing down of foreign workers through multi-tiered levies.

“The Economy Ministry, which structures the MP, will finalise its goal of reducing foreign workers through phases by 2030 in the 13th Malaysia Plan.

“The Anti-Ali Baba Act allows actions to be taken against Malaysians who illegally rent out licences to foreign workers without meeting its conditions,” he added.

However, Rafizi said all the measures require balance to avoid drastic effects on industries that are heavily reliant on foreign workers.

‘Ali Baba’, also known as rent-seeking, includes manipulating economic conditions or public policies to increase profits, such as unlawfully renting business licences or obtaining a contract for a third party to implement it, with the initial contract holder receiving a share of the profits.

Rafizi was responding to another X user, who urged the government to enact laws that address the issue of foreigners allegedly enjoying local subsidies as well.

In July, Prime Minister Datuk Seri Anwar Ibrahim said the government was studying and drawing up policies as well as legal strategies to curb the culture of Ali Baba.

He said a proposal would be tabled before the cabinet to address the problem, which had caused a 1% loss in the GDP involving procurement, licencing, permit issuance, and quota, as well as subsidy and grant distributions.

On Thursday, Kuala Lumpur police chief Datuk Allaudeen Abdul Majid said enforcement authorities had detained 1,101 undocumented migrants, including two children, in a multi-agency operation in Jalan Silang.

Meanwhile, Seputeh MP and DAP vice chairman Teresa Kok urged authorities to arrest irresponsible recruitment agents who abandon migrant workers after bringing them into the nation.

She said that instead of pointing fingers at the foreigners who were caught during the raid, the public should redirect their ire on agents who smuggle workers, hold their documents, and exploit them. – December 25, 2023

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