PUTRAJAYA: Subsidising local fresh graduates' salaries is one of several proposals that the Cabinet has deliberated in a move to reduce Malaysia's dependence on foreign workers.
Prime Minister Tun Dr Mahathir Mohamad, however, stressed that no decision was reached on the said proposal as the government had to factor in all aspects, including the availability of funds in its coffers for such a move.
“There is a suggestion to have the indirect subsidy be channelled through companies employing them (local fresh graduates), of which the company can volunteer to participate. It is only a suggestion... no decision has been made yet on the matter,” the prime minister told reporters after the launch of e-commerce platform Bohai Commodity Exchange (BOCE) Malaysia/Asean.
Dr Mahathir said this in response to a report in a local Chinese daily report stating that the cabinet yesterday had looked into providing RM6 billion as allowance and salary subsidies for fresh graduates, a move which reportedly could help 50,000 young Malaysians obtain employment.
It was reported that the subsidy was suggested to be given only for two years.
Dr Mahathir, however, did not confirm whether the amount of RM6 billion was raised in yesterday’s cabinet meeting.
The prime minister said the country had to look into the issue of being overly dependent on foreign workers, causing Malaysia to lose billions of ringgit due to outflow of funds.
“We do not want our money to go out. When there is an outflow (of funds), a country can be poor,” he said.
Dr Mahathir said the low salary of certain jobs usually held by foreign workers was one of the reasons why local workers were not keen to do such jobs.
“We have many foreign workers coming here to work because our own people are not interested to work. Perhaps, it is due to low salaries.”
As of March, it was reported there were 1.8 million foreign workers in Malaysia, as recorded by the Immigration Department.