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MEF Press Release

MEF supports action against employers that terminated local employees after obtaining approval quota to employ foreign workersWednesday, 1 March 2023
Press Release

​PETALING JAYA: The Minister of Human Resources YB Tuan V. Sivakumar stated that MoHR received many complaints about local companies which had received quota approvals for foreign workers have terminated Malaysian workers. The YB Minister issued a firm warning against employers that the approval of the quota and the authorisation of the employment of foreign workers to them is to cover the lack of employment and not to be used as an excuse to replace existing local workers.

MEF President, Datuk Dr. Syed Hussain Syed Husman P.J.N., J.P. stated that “MEF is concerned by the actions of some employers that had resorted to terminate local employees after obtaining approval quota to employ foreign workers. As the Minister of Human Resources YB Tuan V. Sivakumar had issued the statement on the subject MEF is of the view that appropriate action should be taken against such employers. Malaysians are first priority to be employed for the vacancies and there is no compromise on giving priority for Malaysians to be employed first. Foreign labour will be employed where Malaysians do not desire to fill up such vacancies.”
“MEF is not hesitant to recommend to the Ministry of Human Resources that firm action be taken against employers that breached Section 60 M of the Employment Act (EA) 1955. Section 60M of EA provides that no employer shall terminate the contract of service of a local employee for the purpose of employing a foreign employee. Any employer or company found guilty of breaching section 60M EA may be fined up to RM50,000 for each offence. MEF supports the stand taken by Ministry of Human Resources that for such cases the approved quota to bring foreign workers will be cancelled.”
“However, MEF is not sure if these employers are MEF members. MEF is addressing to members of MEF. MEF believes that this experience could be from other employers who are not MEF members. Anyway, MEF supports the actions of the Ministry of Human Resources.”
Datuk Dr. Syed Hussain states further that “Employers should not abuse the Relaxation Plan for the Hiring of Foreign Workers to the detriment of local employees. For the period 17th January until 31st March 2023 under the Relaxation programme the approval process for foreign worker quota applications in five critical sectors namely plantation, manufacturing, construction, agriculture and restaurant is speed up and approval will be given within 3 working days.”
For further information, please contact the MEF Secretariat at 03-7955-7778 or fax 03-7955-9008 or email
1 March 2023
MEF President,  foreign workers
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