Last Friday, on the 28th of January 2022, the Menteri Besar of Selangor, Amiruddin Shaari, officiated at a ground-breaking ceremony in Kampung Baru Balakong for the first Centralized Labour Quarters (CLQ) for factory workers in Selangor to be built on industrial land.[1]
This CLQ was initiated by the Factory Owner’s Association in Kampung Baru Balakong[2] and has received the necessary approval from the relevant state and federal agencies including Majlis Perbandaran Kajang (MPKj) and PLAN Selangor (formerly known as Jabatan Perancangan Bandar dan Desa / JPBD Selangor, an agency under the Ministry of Housing and Local Government). This 15 storey CLQ consist of 598 units of accommodation over 15 stories and can house up to 3600 workers from the surrounding factories in the eight nearby industrial estates in the Balakong / Seri Kembangan area.
While this hostel is meant to house both Malaysian and non-Malaysian workers who are working in the factories in the Balakong area, most of the workers who will be house here will be foreign workers. While I believe that the design of each of the units can be customized by their owners[3], the basic design of each unit is meant for individual workers, rather than for families. Each unit will be able to accommodate 6 workers (which is compliant with Act 446) and the hostel will provide additional amenities such as a clinic, supermarket, multi-purpose hall, parking for buses and perimeter fencing and security.
Figure 1: Brochure showing the 15 storey CLQ for workers in Balakong
Figure 2: Brochure showing the 8 industrial areas located in Balakong and Seri Kembangan
The guidelines and procedures for applying to build CLQs for workers were published in 2021 by PLAN Malaysia[4] including how to obtain the necessary approvals to build these quarters on industrial land, which was previously not allowed.
Importantly, these CLQs will be built and managed in compliance with the Workers’ Minimum Standards of Housing and Amenities Act (Act 446). This is an important step in ensuring the proper treatment of workers in the manufacturing sector so that accusations that these workers (especially foreign workers) are being mistreated and housed in inhumane conditions can be minimized. We have witnessed actions taken by the United States government against many glove manufacturers in Malaysia because of such accusations. More recently, a Johor Baru based supplier of components to Dyson, a global manufacturer of high-end electrical appliances, was removed as the company’s supplier because of accusations of violation of labour laws.
More of such CLQs should be built on existing industrial land not just in Selangor but also in other states such as Negeri Sembilan, Melaka, Johor and Perak which have large industrial estates with a high number of foreign workers. The building of such CLQs in industrial land will not only be more convenient for the factory workers in terms of reducing traveling time to work but is also less intrusive for the local resident population which may object to such CLQs being built in existing residential areas.
State governments should work closely together with the federal government to identify tax and other incentives to encourage greater investment by the private sector in the building and management of such CLQs on industrial land for the manufacturing sector.
Figure 3: Dr. Ong Kian Ming with the JV developer of the CLQ in Balakong
[2] The full name of the association in Malay is “Persatuan Pemilik Tanah dan Pengusaha Kilang Kawasan Perindustrian Kampung Baru Balakong”
[3] Most of the initial investors in these properties will be the owners of the factories in the Balakong area since the units will be used to house their workers.