By Khairie Hisyam
The Master Builders Association of Malaysia (MBAM) is protesting a 25% wage increase for Indonesian workers in the construction sector as “not timely”.
In a posting on its official Facebook page this afternoon, MBAM said neither the association nor the Malaysian government was consulted on the increase, which was announced by the Labour Attache of the Republic of Indonesia in a circular dated June 29, 2015.
“MBAM felt that the increase in wages was not timely at this moment with the general costs increase from goods and service tax (GST), impending costs increase from various sectors such as electricity tariff, toll rates, building materials, and etc,” the association said.
According to a copy of the circular sighted by KINIBIZ, the minimum wage for Indonesian workers for the construction sector will be raised from RM40.00 per day to RM50.00 per day effective Aug 1, 2015.
The increase was based on a meeting involving the Republic of Indonesia’s embassy in Kuala Lumpur, the Construction Labour Exchange Centre Berhad and MBAM, said the circular, adding that rising living costs due to inflation and GST were taken into account.
Compliance with the new wage rate is compulsory for all parties hiring Indonesian labourers within the construction sector, stated the circular further. In addition, requests for workers will not be processed until the employer concerned complies with the new wage rate, the circular added.
“MBAM and the government of Malaysia were not consulted on the increase of the wages and it has not been deliberated although it was brought up by the Indonesian Labour Attache in one of the meetings with MBAM held on June 26, 2015,” said MBAM in a brief statement.
Chuan Yeong Ming
An umbrella organisation representing the construction and services industry, MBAM was founded in 1954 and currently has 25 affiliate member associations.
An umbrella organisation representing the construction and services industry, MBAM was founded in 1954 and currently has 25 Affiliated association members.
According to a previous estimate by Bank Negara Malaysia, there are currently over 400,000 registered foreign workers in Malaysia, of which about 25% is in the construction sector.
MBAM Vice President Chuan Yeong Ming had previously told KINIBIZ in December 2014 that the construction sector is currently facing a critical labour shortage and require more manpower to the tune of over 120,000 at least this year.
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