KUALA LUMPUR (July 30): DAP national chairman Lim Guan Eng has urged Human Resources Minister Datuk Seri M. Saravanan to simplify procedures for the intake of foreign labour, not only to overcome corruption, but to also stop the ringgit from further weakening, and stimulate economic growth, amid the US economy's technical recession.

In a statement on Saturday (July 30), the Bagan Member of Parliament said the local currency had fallen to a record low of 3.231 to the Singapore dollar, and hovered at 4.46 against the greenback, the lowest in five years.

He added that the ringgit is expected to continue depreciating as prices of crude oil and palm oil fall, while the US economy is in a technical recession, after its gross domestic product shrank by 0.9% in the second quarter, following a 1.6% contraction in the first quarter.

"A declining ringgit — against [the currencies of] two of our three biggest trading partners — brings higher risk of rising business cost and cost of living, as well as an economic slowdown, due to the US [economy's] technical recession. The government’s policy flip-flops and inability to rein in corruption have caused government coffers to almost run out of money."

According to Guan Eng, only policy deregulation and liberalisation of quotas may restore business confidence.

"The self-inflicted labour shortage over the last one year of 1.2 million workers⁠ — caused by bureaucratic red tape, inter-ministerial confusion, and the government’s inability to keep its promises in its memorandum of understanding with Indonesia ⁠— defines a failed government and the incompetence of Human Resources Minister M. Saravanan.

"The total RM33.5 billion in losses from the labour shortage exclude losses in the non-oil palm, auto parts and glove industries. If losses in the manufacturing, retail and hospitality, tourism and services sectors are tabulated, total losses will run into tens of billions of ringgit. 

"Many businesses have to reject new orders, or even close down, due to the foreign labour shortage. Some employers are so desperate that there are reports of paying RM1,500 to RM1,800 per head to secure foreign labour.

"Decentralising applications [for foreign labour] to individual states, and not in Putrajaya, is a first step, but applications must be facilitated and processed quickly. 

"Saravanan must give full accounting, with a weekly report of how much foreign labour is processed against the number of applications," Guan Eng said.