04/03/2011 (The Star Online) - The plantation sector should be given more options with regard to the new ruling by the Health Ministry on foreign workers medical insurance scheme (FWMIS), an industry source said.

“There is uncertainty over the current position of the plantation sector vis-a-vis the scheme,” the source said.

FWMIS was set up to overcome the problem of mounting non-payment of hospital bills estimated at RM18mil by foreign workers in Malaysia. The ministry has, therefore, decided that all foreign workers in the country should be provided with proper medical insurance coverage.

After initially being exempted from FWMIS, which was formed early this year, the ministry decided to reverse its decision to re-include plantation companies into the scheme.

“Plantation companies should be exempted from the mandatory requirement, or at best be given the options to choose either the current direct payment or taking the insurance premium,” said the source.

All plantation workers, including foreigners, currently fall under the Workers Minimum Housing Standard & Amenities Act (WMHSA) 1990.

“This means that plantation companies are responsible for providing healthcare services to their workers.

“Many plantations have even set up estate hospitals and clinics with visiting medical officers and hospital assistants,” said the source.

On the other hand, many other sectors of the economy do not stick to WMHSA 1990 but now had to adhere to the new insurance scheme.

By right, the source said, the plantation sector which had complied with the WMHSA 1990 should be exempted from paying for the second time (in the form of FWMIS).

In addition, even before the foreign workers are admitted to hospitals, the plantation companies had to provide a bank guarantee.

“Therefore, the issue of non-payment to the hospitals does not involve the plantation sector.

“The WMHSA has a provision that enables the hospital to claim from the plantation companies for the medical treatment of its workers,” added the source.

Since the plantation sector does not contribute to the RM18mil arrears in unpaid hospital bills, it should not be placed under FWMIS.

Currently, there are about 1.8 million foreign workers, of whom only 350,000 are in the plantation sector.

As such, the exclusion or exemption of only 20% of plantation foreign workers from FWMIS should not affect the financial resources of the scheme, added the source.

Malaysian Palm Oil Association (MPOA) chief executive officer Datuk Mamat Salleh said: “MPOA had undertaken a survey of 200 estates of its members which employed 39,929 foreign workers.

“In 2009, some 650, or 2%, of the foreign workers sought medical treatment in government hospitals, costing only RM216,214.”

On the other hand, members of MPOA may have to incur RM4.7mil if “they were to participate in the FWMIS scheme.

“MPOA members, including government-linked companies and Felda, which have many foreign workers will have to pay a bigger sum to insurance companies compared with the amount they are paying now.”

This would also mean that the plantation sector, which is currently paying about RM5mil directly in terms of medical bills, would have to fork out RM42mil in insurance premiums, said Mamat.

He concurred that it would be better for the plantation sector to be given the option of either paying directly to the hospitals or taking up the insurance scheme for the medical bills.

“However, the sad situation now is that the sector might also end up having to pay twice pay direct to the hospitals as well as pay for the insurance premiums,” he added.

Currently, the plantation sector is also one of the most heavily taxed industries in the country.