00:00During a recent visit to Manara Star, Deputy Investment, Trade and Industry Minister Liu
00:08Chintong met with the top management of Star Media Group and shared his thoughts regarding
00:13the country's economy and job market.
00:15Liu addressed the perception that Malaysians, especially youth, find jobs in the 3D, dirty,
00:22dangerous and difficult sectors unfavorable, and argued that the real issue is pay disparity,
00:29not the nature of the jobs.
00:59He also talked about his latest book entitled Second Takeoff, Strategies for Malaysia's
01:25economic resurgence, a collection of essays on economics, society and governance, which
01:31includes policy suggestions for Malaysia's development into a high-income nation.
01:37Liu emphasized the importance of reducing dependence on foreign workers.
01:41Nowadays, when you think about the major cities, Kuala Lumpur, Johor Bahru, if we cannot create
01:47jobs that pay more than what Grab is paying a driver, no Malaysians want to work in factories.
01:55But in order to create that virtuous cycle, we will need to reduce the number of foreign
02:01workers, we need to reduce the number of influx of foreign workers, we need to create a tighter
02:06labour market, and we need to encourage corporations to move up the technology ladder.
02:13He also addressed pay disparity to improve economic conditions for Malaysians, and highlighted
02:19the need for comprehensive policy reviews to ensure locals do not seek employment abroad
02:24in undesirable sectors.
02:26I don't think it's a question of mentality at all, it's a question of pay.
02:31Because the same people are doing 3D jobs in Singapore, the same group of Malaysians
02:38are doing 3D jobs in Singapore, in Australia, we must move away from a situation where Malaysia
02:47imports unskilled foreign labour and exports Malaysians to be illegal foreign workers.
02:53That equation has to be reworked, we have to work on that equation and find a balance.
02:59Elaborating on the issue of foreign worker reliance, Liu said the government should establish
03:04clear policies to gradually reduce the number of foreign workers over time.
03:08In the long run, we should be very clear to everyone, government policy should signal
03:17that we want to reduce the number of foreign workers, and give a timeframe with clear policies
03:26to indicate that at what point we want to reduce the number of foreign workers to what
03:31level.
03:32The Prime Minister has announced that the government is working on multi-tier levy.
03:39Multi-tier levy was first spoke about in the 11 Malaysia Plan, it was supposed to be introduced
03:45in 2016 and it has been dragged on for the longest of time.
03:50I hope this year, as the Prime Minister mentioned in the budget speech, and also as I understand
03:57there are already some work being done by various ministries in order to formulate
04:04a multi-tier levy.
04:06That means maybe it will start gradually, but annual increment to the extent that in
04:1210 years time, they know by now that in 10 years time they will have to pay a very expensive
04:18levy, more expensive than hiring local workers.
04:22He stressed that government and industry collaboration is essential for the gradual reduction of
04:26foreign workers.
04:28We do not want to introduce immediate shock, there is no point to introduce immediate shock
04:33to solve a 40 year problem, or at least 25 years problem.
04:38So if we can actually have that conversation and to find out the sweet spot as well as
04:43the equilibrium and move with a 10 year horizon, that should be the way to go.
04:50In tabling the 12 Malaysia Plan mid-term review in the Dewan Rakyat on September 11 last year,
04:56Prime Minister Datuk Seri Anwar Ibrahim announced that the government would implement a multi-tiered
05:01levy system aimed at securing job opportunities for locals and promoting automation and mechanization
05:08while maintaining the policy of limiting foreign workers to 15% of the total workforce.
05:15He identified skills mismatch, low wages and slow productivity growth as key issues hindering
05:21Malaysia's transition to a high-income economy, noting that the government has introduced
05:27initiatives for a progressive wage model benefiting both workers and employers.
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