Worker Shortage and Its Effect on Demand

The lack of staff, whether local or foreign, is one of the issues faced by some businesses as Malaysia moves to endemicity. Returning to pre-pandemic levels may be a distant dream for them as long as these difficulties remain unresolved.

A Cameron Highlands farmer, Uncle Lee, said that he used to employ six foreign employees and two locals to assist him with his farming. However, after the pandemic, he was left with only two farmhards. 

He tried to rehire the local workers that he had to let go, but they told him they had found another job in another industry.

Uncle Lee, 55, stated that his farm's leafy greens were in high demand. However, due to a lack of workers, he was forced to scale back his operations.

 

Labour-intensive businesses still struggling

According to Koong Lin Loong, treasury general of the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM), labour-intensive companies are still struggling since they are still waiting for the entry of foreign workers.

He said that they have a demand but are unable to meet it since they lack workers. Due to labour scarcity, the cost of conducting business has become prohibitively expensive for them.

According to Koong, some of the industries or sectors still dealing with labour issues, including: 

• Plantation, 

• Construction, 

• Hospitality

• Renovation, and 

• Service

He noted that the transactions and sales returned for these sectors, but not the profit due to labour issues.

He urged the unemployed to return to work as soon as possible and not fall behind in their Employees Provident Fund (EPF) contributions to secure their future.

He stated that this would include gig workers because such work is not long-term. He added that the government should expedite and simplify the procedure of hiring foreign labour in various businesses.

According to him, as an export-dependent country, Malaysia would lose out to other countries if enterprises did not deliver orders. The government should also find a means to legalise and employ a number of illegal foreign employees, particularly those who are healthy and skilled.

 

The effects of last year's floods

According to Abdul Halim Husin, president of the Malay Chamber of Commerce Malaysia, those involved in hardware stores and agriculture are suffering as a result of last year's huge floods.

Due to corroded equipment, he said these businesses had to fix their machines and reduce their costs. He added that their sales were also slow during Hari Raya.

For agriculture businesses, Abdul Halim stated that harvesting and reaping will take time.

He suggested that the government strengthen the farm sector and boost automation to reduce national imports and reliance on foreign labour.

He also urged the government to encourage students to choose courses that are in high demand in the economy, as well as to prioritise Technical and Vocational Education and Training.

 

Increased prices and short supplies

Datuk Seri Rosli Sulaiman, head of the Malaysian Federation of Hawkers and Petty Traders Association, stated that small traders had been impacted the hardest by increased raw material prices and supply constraints.

"They usually buy 10 and 15 chickens, now they can only buy two chickens. How do you do business with only two chickens?" he said. He added that prices for fish, beef, and vegetables had also increased.

Rosli believes the government should do more to secure Malaysia's ability to produce basic food. He offered Thailand as an example of a country that has improved its agriculture sector to be self-sufficient.

"If the cost of chicken feed has risen, why can't we make our own? We may have the cooperatives go into chicken farming and wholesaling," he added.

 

Source: The Star