MARii aims for zero foreign labour in vendor network, phasing out 70,000 personnel by year end – report

MARii aims for zero foreign labour in vendor network, phasing out 70,000 personnel by year end – report

The ministry of international trade and industry (MITI) and the Malaysia Automotive, Robotics and IoT Institute (MARii) collectively aim to phase out the 70,000-strong foreign labour workforce in the local vendor ecosystem by the end of the year, said MARii CEO Datuk Madani Sahari, adding that the target will be spearheaded by national carmakers Proton and Perodua, according to The New Straits Times.

“MARii has had discussions with Proton and Perodua to collaborate together in reducing foreign labour dependency for the local vendors supply chain. Proton and Perodua have about 200 companies involved in Tier 1 local vendors with a total of 40,000 foreign workers. If we can phase out foreign labour, it would create more employments for the locals,” Madani said.

The Malaysian government has been phasing out between 32,000 to 35,000 foreign workers in the country from 2014 until 2019, the news daily reported. The local vendor supply chain currently has a workforce of 220,000 working in 641 companies, the MARii CEO said.

MARii aims for zero foreign labour in vendor network, phasing out 70,000 personnel by year end – report

“Previously, the local automotive sector employed about 110,000 (foreign personnel). Presently, we still have about 70,000 foreign workers in the local vendors ecosystem that supply parts for the original equipment manufacturers (OEMs) based in Malaysia,” Madani said.

“We also have done cost-benefit analyses (which found that) hiring local workforce would be more competitive and cheaper (compared to) employing foreign labour. Companies would have saved the cost for the foreign labour levy and passports and visas, hence it is more practical for the local automotive sector to recruit locals, creating more jobs,” he said.

MARii has partnered with 439 local vendors since 2012 for various programmes, including the Automotive Supplier Excellence Programme (ASEP), MARii Industry4WRD Technology Platform (MITP), Automotive Industry Certification Engineering (AICE), and Industry Professional – Led Certification: Pengiktirafan Percapaian Terdahulu (IPC-PPT), which serve as tools to enhance the participants’ business capabilities in order to meet industry standards, the report said.

Looking to sell your car? Sell it with Carro.

10% discount when you renew your car insurance

Compare prices between different insurer providers and use the promo code 'PAULTAN10' when you make your payment to save the most on your car insurance renewal compared to other competing services.

Car Insurance

Mick Chan

Open roads and closed circuits hold great allure for Mick Chan. Driving heaven to him is exercising a playful chassis on twisty paths; prizes ergonomics and involvement over gadgetry. Spent three years at a motoring newspaper and short stint with a magazine prior to joining this website.

 

Comments

  • YB Albert Kunci Kunta on Jan 24, 2020 at 5:10 pm

    High ranking gomen officials should be phased out,like all these cakap cakap bola je.
    Talk 3 talk 4,is too easy.What have this guy done so far?

    Like or Dislike: Thumb up 22 Thumb down 1
    • How about this statement – The Malaysian government has been phasing out between 32,000 to 35,000 foreign workers in the country from 2014 until 2019?

      Please give credit when it is due.

      Like or Dislike: Thumb up 5 Thumb down 4
      • Sabri Jahanah on Jan 27, 2020 at 12:32 pm

        In 5 years only 35,000 workers? We have officially 5 million foreign workers. Unofficial is 8 million

        Like or Dislike: Thumb up 3 Thumb down 0
  • Rakyat Malaysia on Jan 24, 2020 at 5:14 pm

    Too many foreign workers in Perodua now. I don’t know how they can maintain National Car status when the are run by Japanese bosses, using foreign labourers to assemble a rebadged foreign car.

    MACC should investigate their business operation and revoke their status as National Car maker, then make them pay back all the incentives and tax deductions they had cheated from the gomen in the past 30 years. Do this better than snooping onto private conversations.

    Like or Dislike: Thumb up 47 Thumb down 14
  • John Sambung Bayar on Jan 24, 2020 at 5:31 pm

    foreign labour is there because the majority don’t want to do hard work. All want gaji besar and hidup senang lifestyle.

    I ask local fresh grad what his first job he wants to be…..he terus answer Manager.

    Come on la…..fresh grad how to become Manager immediately?

    This is the attitude of local fresh grads in Malaysia. They don’t want to start at low and bottom of the hierarchy.

    So, you need foreign labour to do all these jobs

    Like or Dislike: Thumb up 45 Thumb down 26
    • kamon la on Jan 25, 2020 at 12:09 am

      kamon la, dont try to paint everyone with the same brush.

      a lot of young people are willing and do work hard for a living

      Like or Dislike: Thumb up 21 Thumb down 1
      • seancorr (Member) on Jan 25, 2020 at 4:13 pm

        Question is are you willing to start from the bottom? I can say yes because I started right at the bottom of the food chain as a trainee and moved up to where I am now with the capacity to hire staff and when I interview these fresh grads, not only do they want position but they also want a salary that is reserved for staff with around 5 years of experience.

        Like or Dislike: Thumb up 8 Thumb down 8
        • Logical Deduction on Jan 26, 2020 at 12:12 pm

          Every stingy business owner keep thinking to pay newly hired what they paid 5-10 years ago because that’s what they paid their staff 5-10 years ago. And yet these same people got 100001 reasons why they don’t maintain their prices as 5-10 years ago. And they complain why they are rich and successful but their staffers remained poor. How does that work out?

          Like or Dislike: Thumb up 28 Thumb down 0
        • Rakyat Malaysia on Jan 26, 2020 at 12:49 pm

          Positions are tempered with expectations, now more are degree n Masters holders compared to before so they expect to start at higher level of the food chain. Yet many would accept lower starts if they can be reasoned with. What cannot and should not be reasoned is the low starting salaries, our salary scale had stagnated for goddamn many years w/o counting in inflation. Do you know inflation? It’s the reason you raise prices and never reduce it, right?

          Like or Dislike: Thumb up 20 Thumb down 0
        • Sabri Jahanah on Jan 27, 2020 at 12:34 pm

          staff are paid badly because our HR Ministry don’t enforce it on companies. All the baang2 in HR Ministry just gaji buta and never do any work

          Like or Dislike: Thumb up 2 Thumb down 2
          • Well what is Kulasegaran doing? Tidur? Why is the entire Pakatan Cabinet sleeping?!

            Like or Dislike: Thumb up 4 Thumb down 0
    • When taukes start to pay a living wage for the work instead of relying on foreign labourers, tgen you will find local grads willing to take up these jobs. In First World countries, it is illegal to underpay local staffs but here the taukes become rich but their staffs remain underpaid.

      Like or Dislike: Thumb up 21 Thumb down 0
      • Shukor bin Azman on Jan 25, 2020 at 4:48 pm

        Just like Madani, when you don’t perform, they award you Datukship.

        Like or Dislike: Thumb up 3 Thumb down 6
        • Darren on Jan 26, 2020 at 4:27 pm

          Datukship don’t mean anything as that can be bought, so what? Instead of spend money buy datukship why don’t you pay your staff better?

          Like or Dislike: Thumb up 7 Thumb down 0
    • Malam Jumaat on Jan 25, 2020 at 4:37 pm

      young grads from local University refuse to do menial work and work their way up. All of them think they are Harvard or Cambridge material despite not being able to speak a word of English

      Like or Dislike: Thumb up 3 Thumb down 7
      • redpilled on Jan 25, 2020 at 8:11 pm

        Ya like, none of the fake locals who would never work in the military or law enforcement- start out as a private or constable and work up to the highest non-com rank. Or enter the force as an officer.

        You also same la, don’t want to do menial work .

        Like or Dislike: Thumb up 12 Thumb down 1
    • 4bini on Jan 25, 2020 at 4:38 pm

      PT your lazy boy here is threatening to bunuh. This is what you call local grads who have no guidance.

      Like or Dislike: Thumb up 22 Thumb down 7
    • Lolyat on Jan 26, 2020 at 9:27 am

      Please don’t let some troll on PT make you hate an entire race.

      Like or Dislike: Thumb up 13 Thumb down 0
    • Rakyat Malaysia on Jan 26, 2020 at 4:33 pm

      Friend. Don’t get so upset that you react because of his racism and discriminating near seditious remarks. You know yourself he is just saying what his kind are thinking so that is good ady. That is why I keep asking when can we trade our local ones that love to hate and complain for 60 years with Mainland ones that are hardworking, logical, loyal, and can perform so much better than our local ones. I am still waiting when can we trade them in, so when can?

      Like or Dislike: Thumb up 5 Thumb down 0
  • The Truth About Foreign Labour on Jan 24, 2020 at 5:35 pm

    MAI is solely responsible for the AP issue in our country. And all the AP holders hardly employ locals. Each AP holder got berpuluh Bangladeshi to wash and deliver the AP cars.

    Go to any AP showroom, you can never see a ingle Malaysian working there. But you see all foreign labour.

    The whole purpose of the AP system was to enable the Bumiputera to penetrate the Auto Industry

    MAI knows about the two major problems

    1) All the APs are sold to other people by the Bumiputera
    2) AP holders only employ Bangladeshi

    So for 30 years what was MAI doing about this?

    Rakyat suffered so much with high car prices because of the AP holders. But the spirit of the AP system was to help the Bumiputera…..only helped other races get rich

    Like or Dislike: Thumb up 26 Thumb down 4
    • Malam Jumaat on Jan 24, 2020 at 10:35 pm

      until today MArii have not abolished AP. For 20 years they lie to us every 3 years that they want to abolish AP

      All to help the cronies and lazy abang2 to get richer and richer.

      Like or Dislike: Thumb up 12 Thumb down 4
      • Unknown on Jan 24, 2020 at 10:53 pm

        Because it was the cronies and certain rich lazy abang2 that put PH in government. If Najib was still around, he would have gotten rid off these Madey lackeys

        Like or Dislike: Thumb up 7 Thumb down 2
  • kokok on Jan 24, 2020 at 5:37 pm

    Everyday tokok since started

    Like or Dislike: Thumb up 8 Thumb down 1
  • Raja Kamarul on Jan 24, 2020 at 6:43 pm

    Can I advise you something (sic)?

    You don’t create employment by vacating filled roles under the misguided belief that locals will fill that vacant role. If locals wanted to, they would be there already. Ask the plantation companies. Locals do not want to work in those jobs, for reasons best known to them.

    You force this, and what will happen is the vendors will end up with insufficient workers, and maybe force wages to go up to entice locals. Guess who will pay for the higher costs? Your voters!

    Like or Dislike: Thumb up 15 Thumb down 2
    • panjang on Jan 24, 2020 at 7:57 pm

      Agreed…
      Why manufacturer prefer foreign labor despite the slightly higher cost is due to the reliability.Reliability in sense of attendence and work ethic as they will work day in and out. Only enjoy during OD/RD.

      Like or Dislike: Thumb up 5 Thumb down 1
    • well it’s good if it forces the wages up, if there’s no incentive i wonder if any of the companies are willing to increase those low-income jobs’ wages in years to come.

      Like or Dislike: Thumb up 3 Thumb down 0
      • panjang on Jan 25, 2020 at 6:01 pm

        Well, these so called low-income job workers are not actually earning ‘low’ figure unless they are working normal hours without OT and living in prime areas.
        Those working shifts can earn slightly above RM2k a month.

        An increase from RM1100 to RM1200 will pinch the account of company running shift. They have to obey the law but without incentives they might as well replace manual labor with automation which they can claim tax deduction under investment.

        Like or Dislike: Thumb up 0 Thumb down 2
  • Proneh on Jan 24, 2020 at 7:21 pm

    Why this najib jilater still in the government?

    Like or Dislike: Thumb up 2 Thumb down 0
  • vivizurianti on Jan 24, 2020 at 7:45 pm

    Hahahaha…again?!

    This Marii fella really love to talk-feel-good-syoik-sendiri. As predicted, just hot air, and no action.

    Like or Dislike: Thumb up 4 Thumb down 0
    • 4bini on Jan 25, 2020 at 4:50 pm

      Every year gives us charts and research but all money and investments still lari to Thailand.

      Like or Dislike: Thumb up 3 Thumb down 2
  • Haidi on Jan 24, 2020 at 10:32 pm

    A big dream, that will takes time, but sure good for the country.

    Like or Dislike: Thumb up 0 Thumb down 0
  • Lulla singh on Jan 25, 2020 at 12:46 am

    Boleh land raise pampered issues like this n then cash it (simple easy approach to make rakyat stupid as rakyat split whether foreign involvement in production should b/should not b in place) these dick heads at same time get their desired results. Bez at the end every one knows without foreign expertise results/production can’t b achieve.

    Like or Dislike: Thumb up 2 Thumb down 0
  • many young labourer will accept low rank position..no issue on that. but not many will do like those foreign bangla/nepal/myanmar/vietnam working OVER 12 hours/day 6 days/week.

    Like or Dislike: Thumb up 3 Thumb down 1
    • Jeremy on Jan 26, 2020 at 4:39 pm

      When these bosses pay peanuts for menial jobs of course no locals will take lah! Go to First World countries with human rights, menial labour is not underpaid not demeaning as even toilet cleaners are professional locals with reasonable working hours and demands.

      Like or Dislike: Thumb up 9 Thumb down 0
      • Mohd Nasir on Jan 27, 2020 at 12:52 pm

        We have to blame our incompetent Government for this . For 20 yrs, they allowed low pay

        Like or Dislike: Thumb up 1 Thumb down 1
        • Angry Voters on Jan 28, 2020 at 12:19 am

          Which is why we voted for PH when they promised to raise minimum wages to RM1500 if they got elected. Now apa? Measly RM50 increase only while inflation is higher than that. Phuuii!!! Better vote back BN larr at least they didn’t cheat us of our BRIM.

          Like or Dislike: Thumb up 3 Thumb down 0
  • Semi-Value (Member) on Jan 27, 2020 at 10:13 am

    oh, please kick out all those overpaid expats also can?

    Like or Dislike: Thumb up 5 Thumb down 1
 

Add a comment

required

required