With Malaysia at the lowest rank in the 2022 US Human Trafficking Report, Prime Minister Ismail Sabri should step in with the Indonesian President to resolve the freeze of Indonesian workers coming to Malaysia. Ismail should reassure Indonesia of the concrete steps taken to protect migrant labour rights in the country.
Malaysia is facing wealth destruction caused by the current government’s neglect and incompetence as well as obsession with political survival. Whilst interest is focused on whether the Registrar of Societies will approve UMNO party amendments to postpone party elections after the next general elections, the people and businesses continue to suffer from the economic malaise caused rising prices and inflation, shortage of workers, depreciating ringgit and prospect of an economic recession by year-end.
Rejecting UMNO’s proposal to defer party elections would mean that the general elections will be held next year to allow UMNO elections to be held before the end of the year. This would seem to be the most practical solution to focus on the economic crisis that the country is facing.
The ringgit fell to a five-year low against the US dollar on Tuesday to RM4.46 (July 19) as the Singapore dollar at RM3.20 today inched to its record low of RM3.21. With rising prices and near record lows of our ringgit against two of our three biggest trading partners, inflation will only worsen in the coming months. An indicator of how bad the current situation is can be seen by the price of 5kg of cooking oil at RM19 under Pakatan Harapan but now at more than RM45.
Further the colossal misgovernance of the country especially bringing in foreign labour has caused a shortage of 1.2 million workers and losses of at least RM21 billion in the oil palm sector and glove industry. Plantation industries and commodities minister Zuraida Kamaruddin has admitted that Malaysia’s oil palm sector has lost an estimated RM10.5 billion worth of unpicked fruit in the first five months of this year because of the ongoing labour shortage.
The total RM31 billion in losses does not include losses in the non-oil palm or glove industry, such as manufacturing, retail and hospitality, tourism and services sector, where total losses tabulated will amount to tens of billions of ringgit. Such wealth destruction could have been avoided if Cabinet Ministers had been more conscientious in carrying out their duties.
Despite the assurances from Malaysian government officials that the labour problem is resolved there is no confirmation from the Indonesian Embassy as to when Indonesian workers coming to Malaysia can resume. The latest 2022 Human Trafficking Report of Malaysia by the United States does not inspire confidence that Malaysia is taking concrete steps to resolve the concerns of Indonesia to protect their foreign workers.
Coupled with the Indonesian Ambassador condemning Malaysia as a disgrace, there is a severe trust deficit that only the Prime Minister’s personal intervention can overcome. For this reason, there is great urgency for the Prime Minister to step in with the Indonesian President to overcome the freeze of Indonesian workers coming to Malaysia, which should have been easily resolved with a stroke of a pen.