Monday, August 16, 2004

Living beyond the means

Recently Malaysians have been writing to the local newspapers expressing their concern of the adverse impact of foreign labour to the local society. Even Ministers acknowledged that the number of foregners in this country has become a burden to the nation, and if nothing is done now their number will reach 5 million by 2010. The Minister of Health also reported that on the average foreigners have been owing govt hospitals about RM 8 million a year and the maternity wards of hospitals in major town are inundated with foreigners.

The proposed measures by the government like structural adjusment to the manufacturing industry, using more capital instead of labour will take some time to materialise. Besides with the current pegging of MYR to USD will make capital expenditure expensive in Ringgit terms. Malaysian in the meantime cannot afford to subsidise foreigners for their healthcare, education etc. I think the immediate measure would require the imposition of compulsory health insurance to all foreign workers before granting them the work permit. Schooling fees for foreigners in govt school must be raised as a disincentive for them to bring their entire family to Malaysia.

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