Labour situation in Malaysia: Changes and challenges

Abstract

• Population: 32.6 million • Employed persons - 15.6 million (men 9.5 million while women 6.1 million) • High-skilled employment - 27.5% • Semi-skilled 60.1 • Low-skilled 12.4 • Unemployment: 5.3% (in May 2020) • Minimum salary: RM1,200 minimum salary (USD300) • Total trade unions: Over 500 Like other countries, Malaysia has not ‘escaped’ the toughest challenges of the century, especially after the World War II. This, among others, was caused by the COVID-19, the pandemic that was not expected by us at all. The impact of the pandemic that hit Malaysia since the mid of January 2020 is being felt drastically by workers in both the formal and informal sectors. In addition, it does not matter whether they are members of the trade unions or vice versa. We cannot deny the positive impact caused by the COVID-19 at certain levels, but the opposite effects are very tragic, especially in terms of loss of life, declining employment opportunities and socio-economic downturn. Malaysia, like other nations, had faced the effects of severe economic downturns and recessions several times since its independence. And, as a result, many economy sectors and workers have been severely affected. However, the effects of COVID-19 are multi-dimensional. Not only to the workers and various economic sectors, but to all other segments in our living ecosystem. The COVID-19 pandemic has completely changed the labour situation in Malaysia. This is the worst reality we are witnessing today. Worst scenario since independence. Trade unions in Malaysia are struggling to cope with the impact of COVID-19. In line with the efforts being taken by the Government, the union leadership is also redouble its actions and initiatives aimed at assisting the workers and their members. I personally could see that the impact of the pandemic is most severe and serious since the existence of a formal trade union following the implementation of the Trade Unions Act 1940 in the whole of Malaysia (then called as Malaya) in 1947. Trade Unions and the Labour Sector While the age of the existence of trade unions in Malaysia is approaching 80 years, workers continue to face various issues and challenges that require holistic solutions. The first union in Malaysia was established before World War. Today the number of unions is estimated over 540. However, the number of union members is only about eight percent of the workforce. Much lower than the 14 million employees currently contributing to the Employees Provident Fund (EPF). Although the population and comparatively those who participating in the labour sector increased strongly, but the number of workers becoming union members is still low. This is an unfortunate situation despite various efforts are being taken by the UNI-Malaysia Labour Centre (UNIMLC), Malaysian Trades Union Congress (MTUC) and the Congress of the Union of Employees in the Public Service (CUEPACS). For the first three decades since independence, the working class in Malaysia comprised of its own people, with a large number of them are school leavers and university graduates was too small. In fact, the number of higher education centres is also much smaller than now. Today we have more than three dozens of universities. Thus, in line with the growth of higher education, today the number of university graduates is more than half the total size of the workforce. In fact, in the early decades, Malaysians, especially in the southern part of the Peninsula, took the opportunity to work in the neighbouring country of Singapore. The trend continues to this day. However, since the early 1980s the job market in Malaysia began to open its doors to foreign workers, in areas that are not in the interest of Malaysians, especially from Indonesia and the Philippines, among others to fill vacancies in the plantation, manufacturing and construction sectors (3D jobs - dangerous, difficult and dirty). The number of countries sending their workers to Malaysia has greatly increased to meet local needs. Foreign workers were not only the target of the labour sector, but other sectors including information and communication services and technology began in the late 1990s. The labour market has many undocumented workers. Both legally and illegally employed workers are estimated at around...