KUALA LUMPUR: The Federation of Malaysian Manufacturers (FMM) president Tan Sri Soh Thian Lai, said that the country’s productivity and gross domestic product will be affected if the government continues the halt foreign employees’ applications.

He adds that the government’s abrupt move to freeze all applications and approvals for foreign worker quotas on March 18 will deprive enterprises of order-book fulfillment, particularly in export markets.

Tan Sri Soh Thian Lai also stated that the government cannot impose a sudden freeze on any government policy because it will disrupt the hiring process, particularly for small and medium enterprises (SMEs) that are starting to improve their operations or sales.

He said following his recent meeting with ministers, the government’s concern in making the freezing decision was based on those quotas issued but not used by firms within 30 days.

“Those who paid out the quota and pay out the foreign worker’s levy, they are given 18 months…So, in these 18 months, the government cannot cancel the quota but cancel those quotas (by companies) who did not pay the levy.

“Therefore, we are seeking that the government should be based on case to case for any application to cater for their changing production needs,” he added

Up to 1.5 million foreign workers were sent back to their country during the Movement Control Order (MCO), while based on the statistics, about 1.2-1.3 million foreign workers in Malaysia.