Promoting Vietnamese Manpower Export to Malaysia

Malaysia is one of the ASEAN countries to accept a lot of foreign workers. At present, about 2 million foreign workers are working in Malaysia, of which nearly 200,000 are Vietnamese.

 

According to reports released at the seminar on "Cooperation to send more Vietnamese workers to Malaysia" held in Hanoi by the Overseas Labour Management Department under the Vietnamese Ministry of Labour, War Invalids and Social Affairs (MoLISA) in collaboration with the Labour Department under the Malaysian Ministry of Human Resources, as many as 138 Vietnamese companies are presently permitted to send Vietnamese guest workers to Malaysia. Since 2002, over 190,000 Vietnamese guest workers have been assigned to work in 12 out of 13 Malaysian states, mainly working in manufacturing sector (up 70 percent), construction, agriculture, services, and housework (30 percent). The vast majority of Vietnamese guest workers in Malaysia have jobs and stable incomes.

 

Owing to global economic crisis, the number of Vietnamese labourers sent to work in Malaysia dropped significantly in recent years, from 26,704 people in 2007 to only 2,792 people in 2009. However, with the economic recovery and positive cooperation of companies in both countries, the number of new Vietnamese labourers assigned to Malaysia rose to nearly 12,000 people in 2010, but the result was deemed modest relative to supply and demand from both sides. Mr Dato’Sh Yahya Bin SH Mohamed, Director of the Labour Department of Malaysia, said: “At the moment, Malaysia needs more than 100,000 foreign workers a year. We need workers with good skills and working discipline. We highly appreciate Vietnamese workers for their diligence, industriousness, quick-mindedness and sociability. However, a small number of Vietnamese workers present bad characters.”

 

Mr Nguyen Thanh Hoa, Deputy Minister of MoLISA, said: Malaysia is a relatively open market and is in need of many foreign workers with qualities fitting Vietnamese workers’ abilities. Promoting manpower export to Malaysia is also a solution to create jobs for repatriates from Libya, especially when Malaysia is in the process of economic recovery. The Ministry of Labour, War Invalids and Social Affairs will approve good contracts.

 

At the seminar, Vietnamese companies have the opportunity to discuss directly with Malaysian authorities difficulties in finding contracts, applying for work permits and coordinating to solve new problems, especially those relating salaries for workers. Mr Nguyen Tien San, Counsellor and Head of Vietnamese Labour Management Committee in Malaysia, added that a Vietnamese worker is paid on average some 900 - 1,100 ringgits (VND6 - 8 million) a month. Senior workers (4 years or more) have a monthly income of 1,200 - 1,500 ringgits, even 2,000 - 3,000 ringgits if their qualifications are higher.

 

But, representatives from manpower exporters said that incomes of foreign workers in Malaysia are lower than many other markets, expressing hopes that the Malaysian Government will raise wages for workers. In reply to this matter, Mr Dato’Sh Yahya Bin SH.Mohamed said: "At present, Malaysia does not provide a minimum wage salary for workers, but the pay is agreed by employers and employees; thus, proposals for raising salaries for migrant workers are impossible. We only can try to pay salaries to migrant workers as much as local workers. However, when market-based negotiating salary policy is applied, the pay will be governed by supply and demand. When the demand for labour is high, employees must pay high for workers.”

 

To stabilise and develop the Malaysian market, Mr Nguyen Tien San recommended companies to examine and select partners and orders carefully before signing, train workers with essential skills before sending them to Malaysia, and pay attention to managing Vietnamese workers there. In addition, the Overseas Labour Management Department requested the Malaysian Labour Department examine and supervise operations of companies employing Vietnamese workers, help Vietnamese workers have insurance policies, and strictly treat employees refusing to grant work permits for Vietnamese workers. Besides, according to Mr San, concerned parties should share updated information on migrant worker policies of the Malaysian Government and answer questions concerning Vietnamese worker matters in Malaysia. These official sources of information will build up the trust of workers when they choose Malaysia as the destination for their careers, increase the number of foreign workers in Malaysia, and strengthen the two countries’ cooperation in general and labour relations in particular.