Employing Staff In Iskandar Malaysia - WordPress.com · Title Experience Salary (RM) Warehouse Manager 8-10 years 7000 - 10000 Warehouse Asst Manager 4-5 yrs 4500 - 7000 Warehouse
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Employing Staff In Iskandar
Malaysia:How Best to do it?
13 May 2015
Alex ChongGeneral Manager-Singapore/MalaysiaJobPlus Pte Ltd SearchPlus Asia Pte LtdMOM Reg: R1105591
Mobile: 65-91005539
Singapore Ministry of Manpower Lic No: 03C4955
www.jobplus.sg
www.searchplus.sg
In Iskandar Malaysia
Work In Association with Alphajobs Sdn BhdMalaysian Licensed Employment Agency
Labour Laws & Guidelines
General Market Salary Overview
Recruitment Challenges
Employment of Foreigners – Criteria & Process
A) Expatriates & Semi Professionals
B) Foreign Workers
Sources of Foreign Workers
Levies, Quota & Cost Of Hiring Foreign Workers
Employing Staff In Iskandar Malaysia
Presentation Outline
Population of JB City
: 0.5 million
Entire Iskandar Region
: 1.3 million
Labour Force In Iskandar Malaysia
Employment Law & Guidelines
Wages (wef 01/01/2013) Minimum Wage: RM900/mth or RM4.33 per hour
Termination Notice 4 weeks < 2years, 6 weeks 2 – 5 years, 8 weeks >5
years
Probation 3 to 6 months
Annual Leave Min 8 days for 1st year, 12 days for 2nd to 5th year
16 days for 5th year onwards
Sick Leave Min 14 days for 1st 2 years, 18 days for 2nd to 5th year
and 22 days for 5th year onwards
Hospitalisation Leave 60 days
Maternity Leave 60 days
Working Hours Not more 48 hours per week, 12 hours per day
Rest Day One day per week
Over Time Pay Normal Day : 1.5 x hourly pay rate
Rest Day : 2.0 x hourly pay rate
Public Holiday: 3.0 x hourly pay rate
Employee Provident Fund (EPF) Employer:
12%for salary > RM5,000 per month13% for salary <RM5,000 per month
Employee:
11%
SOCSO Contribution Employer : 1.75% of monthly wage
Employee: 0.5% of month wage
(subject to limit of RM2,900 salary)
Retirement Age 55
Employment Law & Guidelines
Title Experience Salary (RM)Warehouse Manager 8-10 years 7000 - 10000
Warehouse Asst Manager 4-5 yrs 4500 - 7000
Warehouse Supervisor 3-5 yrs 3000 - 5000
Warehouse Executive 2-3 yrs 2500- 4000
Buyer 2-3 yrs 2500- 4000
Logistic Supervisor 3-5 yrs 2200- 3500
Stock Controller 2-3 yrs 1800 -2300
Forklift Driver 2-4 yrs 1400 -1800
Delivery Assistant 1-2 yrs 1300-1800
Storekeeper 1-2 yrs 1100-1800
Warehouse Assistant 1-3 yrs 900-1500
Packer 1-2 yrs 900-1200
Typical Salary Ranges – Factory Warehouse Operation
Challenges in Hiring Local Staff
In Iskandar, SMEs Face Same Old Labour Crunch
Some firms put move on hold; M'sian minister says KL will try to resolve
the problem
Dato’ Sri Mustapa Mohamed (International Trade & Industry Minister) :
The dearth of human capital tops the concerns of Singapore businesses
looking to move to the Iskandar region, he said.
Proximity to Singapore
Weak Malaysian Ringgit
Full Employment (Unemployment Rate <4%)
Low preference for technical/ vocational jobs
Low Wages Low Productivity
Overseas Migration of Malaysians to Work
Challenges in Hiring Local Staff
Sources of Local/ Malaysian Staff
Rural to Urban Migration of Workers from Various
Parts of Malaysia including Sabah & Sarawak
Local Public & Private Universities and Colleges
Returning Malaysians From Singapore/Abroad
TalentCorp - https://www.talentcorp.com.my/
Jobs Malaysia -http://www.jobsmalaysia.gov.my/jcs/index.faces
Employment Passes For
Foreign Professionals in
Malaysia
• Employment Pass (24 to 60 months) Expatriate/ Professional Workers earning > RM5000 per month
Professional Visit Visa – Short Term <12 months for technical
training /installation of machines.
In-principle approval for salary > RM8000 per month
EP Types
EP – for applicants monthly salary of at least RM 5,000.
EPII – for applicants monthly salary of at least RM 2,500 and up to RM 5,000.
RP-T – for applicants earning monthly salary of at least RM 12,000
• Work Permits
Blue collar workers (subject to min wage of RM900 per month)
Types of Employment Visas
Expatriate Services Division (Immigration)
•Employer’s Registration
MYXpats Centre (Talent Corp + Immigration)
•Pass application
•Pass processing
Processing of Employment Pass
Processing of Employment Pass
Source: Immigration Department Website
EMPLOYMENT PASSCategory of Expatriates
A. Key Post (Permanent)
Strategic level managerial posts to safeguard foreign companies
interests and investments in Malaysia. Responsible for determining
companies’ policies and direction.
B. Time Post (Specific Time)
* Executive Posts (10 years)–Intermediate level supervisory
/managerial & professional posts which require academic
qualifications, work experience, skills.
* Non-Executive Posts (5 years) – Technical positions that require
technical or practical skills.
Employment Pass – Criteria
The following general criteria apply to all industries and
sectors:
Company’s Paid up CapitalEquity Paid up Capital
100% Malaysian Company RM250,000
Joint Venture (Malaysia and Foreign) RM350,000
100% foreign owned Company RM500,000
Source: Malaysian Investment Development Authority Guidebook
Employment Pass – Criteria
Salary Requirements
Minimum salary of RM3,500 (Time Post) to RM5,000 per
month(Key Post)
Minimum Age
27 years.
Working experience
Minimum 5 years in related field.
Employment Pass – Quota
Manufacturing Companies:
Paid Up Capital < USD200,000
1 expatriate key post only (time post position
subject to approval)
Paid Up Capital >USD200,000 but < USD2million
5 expatriates including 1 key post
Paid Up Capital > USD2million
10 expatriates including 5 key posts
Government Application Costs : <RM1000
Levy (Manufacturing Sector) : RM1,200 per year
Professional Service Fees: Negotiable
Employment Pass – Application Costs & Levy
Foreign Workers in
Iskandar Malaysia
Total Foreign Workers in Malaysia as at 2013
2,250,322
2,080,386 excluding domestic maids
Source: Immigration Department
Source: Malaysian Employers Federation Guide – Dec 2014
Source: Malaysian Employers Federation Guide – Dec 2014
Work Permits – Iskandar
Foreign Workers can be employed in manufacturing sector
Top 5 Source Countries for Manufacturing Industry
Indonesia, Bangladesh, Nepal, Myanmar, Vietnam
Foreign Workers Conditions:
Not allowed to bring in family member
Need Approval To Change Employer
Maximum 5 years Work Permit
NEWS
Two-thirds of foreign workers in Malaysia are illegal
aAn Indonesian filling up some forms to get himself registered under the 6P programme at Kuala Lumpur, in December last year.
By Sean Augustin and Koi Kye Lee
New Straits Times
Thursday, Apr 12, 2012
KUALA LUMPUR - Dreaded by both employers and foreign workers, the large scale legalisation and amnesty exercise known as 6P has just concluded, bringing in the third phase of the exercise that will flush out the remainder of illegal immigrants who are working and staying among locals.
The government recorded 3.1 million foreign workers in the country, of which two-thirds are illegal.
1st step • Ministry of Trade & Industry (MITI)
2nd
Step• Ministry of Home Affairs
3rd Step• Immigration
4th Step
Foreign Workers Recruitment ProcessManufacturing Industries
Engage
Foreign
Agents
Started In 2006 by government, a system where outsourcing
companies supply foreign workers to companies
Employers pay outsourcing companies to source for workers
Outsourcing companies negotiate contracts, arrange work permit,
pay workers, provide accommodation, food and insurance.
Employers recruiting less than 50 foreign workers are required to go
through outsourcing companies
Outsourcing System in Foreign Manpower Supply
Quotas & Levies for Foreign Workers
Iskandar Annual Salary * Annual Levy Quota
Manufacturing RM10,800
(SGD4,000)
RM1,250
(SGD460)
1 local : 3
foreigner
Singapore Annual Salary * Annual Levy Quota
Manufacturing SGD12,000 SGD3,000 to
SGD9,000
60% of total
workforce
* Basic Salary Cost of a Factory Operator (excluding overtime)
Foreign Workers Security Bond
Nationality Bond Amount (RM)
Indonesia 250
Cambodia 250
Bangladesh 500
Nepal 750
Philippines 1000
Vietnam 1500
Note:
Singapore – SGD5,000 for all NTS countries such as the above
Source: Malaysian Employers Federation Guide – Dec 2014
Immigration Department
Levy
• Employer that have implemented minimum wage are allowed to deduct actual amount of levy on a pro-rated
monthly basis.
Accommodation
• Employer that have implemented minimum wage are allowed to deduct RM50 per month
Conclusion
Over the past few years, the Malaysian
government has streamlined and implemented
many positive human resource policy changes
to provide certainty to foreign investors.
Various initiatives such as talentcorp and one-
stop service centres seek to lower the entry
barriers for foreign talent to work in Malaysia
We offer the following services in Singapore & Malaysia :
Recruitment of Permanent & Temporary Staff
Work Passes Application
Contract Staff & Payroll Management
Human Resource Consultancy
151 Chin Swee Road #14-05 Manhattan House Singapore 169876Tel: 65-67339388 www.jobplus.sg
Thank You
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