22/06/2011 (Bernama) - Industry players here want the increase in the levy on foreign workers, especially in the plantation, construction and services industries, to be reduced to sustain economic growth.

The Associated Chinese Chambers of Commerce and Industry of Sarawak (ACCCIS), at its annual general meeting recently, passed a resolution urging the state government to review the current system of hiring workers.

ACCCIS said the rigid procedures imposed by the Immigration Department had caused a massive labour shortage, particularly in the oil palm industry, which resulted in fresh fruit bunches being unharvested.

The trade association said the factors that contributed to the high dependency on foreign workers included high labour intensity of the industry, expansion of new plantation areas and unwillingness of the locals to work in the plantations.

It urged the state government to expand the list of countries whose nationals were allowed to work in the three critical industries besides holding regular consultations with industry players.

ACCCIS said the cost of recruiting foreign workers was about RM3,000 per worker for three years and about RM3,800 in Sabah and Sarawak due to higher agency fees.

The RM540 levy per worker per annum was initially borne by foreign workers through monthly deductions from their wages but since April 2009 it was not allowed and was now borne by the employers, adding to costs, it said.

It cost RM1,700-RM2,000 to produce a tonne of crude palm oil compared with RM1,100-RM1,200 for the more efficient planters in Peninsular Malaysia, it said.