Malaysia firms turn down orders as migrant labour shortage hits

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KUALA LUMPUR (REUTERS): Malaysian companies from palm oil plantations to semiconductor makers are refusing orders and forgoing billions in sales, hampered by a shortage of more than a million workers that threatens the country's economic recovery.

Despite lifting a Covid-19 freeze on recruiting foreign workers in February, Malaysia has not seen a significant return of migrant workers due to slow government approvals and protracted negotiations with Indonesia and Bangladesh over worker protections, say industry groups, companies and diplomats.

Palm oil growers are at breaking point, said Carl Bek-Nielsen, chief executive director of oil palm grower United Plantations. Malaysia's manufacturing Purchasing Managers' Index dropped to 50.1 in May from 51.6 in April, barely remaining in expansion, as the sector shed the most jobs since August 2020, according to data from S&P Global.

Diplomats from Indonesia and Bangladesh, two of Malaysia's biggest sources of foreign labour, told Reuters that workers' rights were part of the hold-up in sourcing migrant workers.

Source: News Formal (newsformal.com)

 

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