There are concerns on whether all local authorities are prepared and/or ready to facilitate and expedite approvals by employers to comply with the Act since the finer details of the Regulations were only just shared. — Bernama photo
KUCHING: The full enforcement of the Workers’ Minimum Standards of Housing and Amenities Act 1990 (Act 446) effective today with fines of RM50,000 for each offence during the current weak economic condition is too drastic and would severely hamper the business revival initiatives of most industries.
The Act was gazetted on September 18, 2019 and the date of enforcement announced on May 27, 2020 providing employers a three month grace period to comply.
However, the Regulation that accompanies the law which provides greater detail on the minimum accommodation standards and amenities as well as the safety and health elements that employers would have to comply with when providing accommodation to workers was only just gazetted and released on the Attorney General’s Chambers website on August 28, 2020.
According to a statement from the Federation of Malaysian Manufacturers (FMM), it was aware and appreciates the efforts taken by the Labour Department over the past month or so in organising nationwide briefings to employers on the finer details of the provisions outlined in the Regulations.
“The amendments to the Act are definitely a step in the right direction as it is important to ensure proper and decent housing for workers as responsible employers.
“Most certainly, the amendments to the Act are also meant to streamline the domestic standards with that of international standards given that Malaysia is largely a trading nation and part of global supply chains,” commented Tan Sri Soh Thian Lai, FMM president in a statement.
“Based on the briefings conducted by the Labour Department nationwide, employers, especially SMEs, will find it challenging to fulfil all the conditions immediately by September 1, 2020 as there would be adjustments that have to be made to meet the provisions of the Regulations which are rather extensive.
It covers areas such as complying with the sleeping/personal space for each worker as stipulated in the minimum standards for accommodation; sourcing for additional housing space given the minimum standards for accommodation; renovating buildings/space to ensure compliance to the minimum standards for accommodation; converting non-residential buildings to buildings for dwelling/accommodation; and obtaining building approvals/certificate of accommodation from the Labour Department and the local councils.
With the expanded scope of the law now to cover employers in all sectors and workplaces under the City Council/Municipal Council, Soh said there are concerns on whether all local authorities are prepared and/or ready to facilitate and expedite approvals by employers to comply with the Act since the finer details of the Regulations were only just shared.
“There could be delays in approvals due to technical procedures. The delays by the local council would have wide ranging impact on manufacturers,” he continued.
“The adjustments that have to be undertaken would come with cost and time to the industry. In light of the current weak economic conditions, most industries are still struggling to sustain their business and maintain employment while rebuilding their business which has been severely impacted.”
In this regard, FMM reiterated its full support for the enhancement to the law which in the long-term would be of a great benefit and advantage for the industry and the nation.
“However, given our current fragile business conditions and to facilitate industries towards compliance, FMM is appealing to the Minister of Human Resources to allow a further 12-month grace period for companies to undertake these extensive adjustments according to the requirements of the law with an assurance of a detailed action plan on their compliance strategies without imposing an immediate penalty.”
FMM suggests that the next 12 months be used to continually educate the industry and to issue a notice of non-compliance for improvements by industry in conformity to the provisions of the law.
“There should also be a requirement for a firm commitment by the industry on the action plan towards compliance within a specified timeframe appropriate to the relevant areas of non-compliance.”