SITUATION OF YOUNG WORKERS IN MALAYSIA
By Sivam Doraisamy
Executive
Summar
The purpose of the study is to survey
the situation of young workers between the age group 15 to 34 in Malaysia. The
survey is based on library search, random interview with production workers and
information/views obtained from community organization working with plantation
workers, factory workers and urban settlers.
Major concern of the study is to analyze the changing trend of
Changing positions of young workers in
the changing labour markets in the past decade and prospect. Besides other
issues concerning young workers such as working conditions and social problems
were also presented to give an overall picture of the situation of young
workers in Malaysia today.
Youth population between the age group
15 to 34 in Malaysia is approximately 9.75 million and they are around 42.5% of
the total population. Youths are also the largest labour force; about 60 to 55%
for the past decade and these are the young workers of the nation. Percentage
of young workers between 15-24 years old are lesser (23.3%, 2000) compared to
young workers between 25-34 years old (31.6%, 2000). At least 54% of young
workers are employed. Employed young women workers made up of 50% of the total
employed male young workers. High proportion of young workers is in the
manufacturing sector. Young workers also the largest number without employment
as the statistics shows that about 83.6% were unemployed especially those
between the age group 15-24, forms 65.6%. The total number of registered
unemployed young workers with the Human Resource Ministry is declining over the
decade. Unfortunately, the numbers of young workers aged between 15-24
registered with the Ministry have relatively increased and form an average of
37% compared to those age between 25-34 only about 13.5% over the past 10
years. Most of these young workers were
also without working experience, about 45%.
So, the population of youth between the
age group 15 to 24 are lesser about 4.37 million (2000) and the number of young
workers (labour force) among the same age group also lower, 23.3% but the
number of them in the unemployed category are higher, 65.6% and the number of
them registered with the Ministry also relatively higher, about 37%.
At least 65% of total registered young
workers have education level above MCE or O level. Labour market indicator
shows that the job vacancies reported to the Ministry is increasing especially
in the manufacturing sector, about 54.6%. But then, another problem facing the
young workers in the current economy crisis is retrenchment. Though the
government statistics shows the number of retrenchment is declining but it is
shocking that the highest percentage (55.15%, 2000) of those retrenched are
from the manufacturing sector, knowing well that most young workers are in that
sector.
Another trend in Malaysia, is the
growing number of 'outside the labour force' youths. Based on government
statistics, it shows most of them have secondary level education and tertiary
education but why are they not part of the labour force especially when 55.5 %
of them are involved in housework? Whether it is their choice or are they not
equipped with right skills to obtain gainful employment need to be studied in
future.
Looking into the working condition of
the young workers in Malaysia, one could say that we are still backward in the
sense that working conditions are depriving. Lowest 40% of household earning an
average monthly income of RM840 and the medium 40% earn below RM2, 202 while
the top 20% earns RM7, 006 a month. Only 20% of workforce are professionals,
technical workers and managerial workers, the remaining 80% are
production-related workers. No minimum wage law in the country. Unionization of
labour force is very low (8%) and labour laws are lenient towards employers.
Working hours are increased to more than 12 hours a day. Low income has forced
young workers to engage in more than one job in order to survive the high cost
of living especially with the privatization of public utilities. Rest, leisure times and in worst situation,
family is forgotten. Thus, it effects healthy family development and creates
more social problems.
Besides,
the number of industrial accidents and deaths recorded in the country is quite
high especially in the production-related sectors where young workers are
employed high in number. This indicates lack of enforcement on the part of the
government while the employers in their intense to maximize profit has
neglected workers health and safety at work place. Number of Social Security
programs designed for the workers also seems to be ineffective in curbing the
industrial accidents as well as protecting the workers from retrenchment and
other labour rights.
Reviewing the issue of housing
conditions and the need to own affordable permanent house with enough space and
facilities seems to be far a reach for those in the lower income group
especially. Forced eviction adds further burden to the young workers population
in the marginalised and neglected communities such as urban pioneers and
plantation workers.
Social problems among young workers and
youth in general are alarming. For instance, the largest proportion of young
workers, especially the unemployed is infected with HIV/AIDS. So are the
alarming figures of 400,000 young workers addicted to drug. Juvenile
delinquency is also arising in number. All together it gives a picture that the
situation of young workers in Malaysia are very critical and they are not the
one to be blamed entirely since the overall picture of the social and economic
situation in Malaysia shows an unequal development.
Currently, young workers seem to be in a
situation where unemployment are higher among them with social problems and
employed in unskilled/semiskilled job with low wages and depressing working
conditions with the higher possibility of retrenchment. The increasing number
of unemployed young workers, especially those who have no working experience
and with those limited number of youths engaged in highly skilled jobs (around
7%) indicates that the government need to do a lot to improve the situation in
order to achieve higher and healthy economic growth. Laws that deprive young workers of their rights need to be
reviewed. Minimum wage law must be legislated to guarantee a decent and fair
wage and safety and health at work place must be given priority. Housing, health care and education must be
made affordable and reachable to all level of people. Presently there is no
compulsory education policy and free education policy particularly for primary
schools needs to be reviewed, even though literacy rate shows 93%.
Future labour
market prospects shows that more skilled workers with more talents and
innovations are needed. Without skills, unemployment rate among young workers
would increase and so are other social problems. The government needs to
provide skilled labour force that the market needed. Identifying problems or
restrictions that young workers facing in attaining such skill education would
help to improvise current planning that the government already has to produce
quality skilled workers. That might
help the government move towards its vision of achieving high value-added,
technology-intensive and capital intensive industrialization and besides
minimizing labour inputs and maximize quality and skills. More Skill Training
Centers with advance technology level and retraining programs must be
formulated to reach all levels or class of young workers in Malaysia.
SITUATION
OF YOUNG WORKERS IN MALAYSIA
1.1 Introduction
a)
Who is a young worker?
Malaysian's Employment Law defines a child as a
person under 14 years of age and a young person as under 16. International Labor Organisation, via
Minimum Age Convention 1973 sets a number of minimum ages depending on the type
of employment or work. The first principle is that the minimum age should not
be less than the age for completing compulsory schooling and in no event less
than age 15. The second principle is that a higher minimum age should be set
for hazardous work. This age may not be less than 18.
According to the Standard United Nations
definition, 'youth' comprises young people aged between 15 to 24 years
inclusive. The Confederation of Free Trade Unions-Asian and Pacific Regional
Organization (ICFTU-APRO) defines Young Workers as a person between the age 15
to 35. The Malaysian government defines youths, as those between the age group
15 to 40 years while the Malaysian trade Union Congress (MTUC) says youth are
those between 15 to 34. Thus for the purpose of this research, the researcher
adopt the MTUC definition. If a person working part-time or full-time or searching for a
job and the person is between 15 and 34 years of age, then he or she is
considered to be a young worker.
b) Objective of the Survey
The Year 2002 on Situation of Young
Workers in Malaysia is a library research conducted within a month period. The
Survey was conducted in cooperation with the Malaysian Trade Union Congress
besides Human Resources Ministry, Occupational Health and Safety Department and
Health Ministry through its statistical arm and the Department of Statistics
Malaysia. The survey is done to collect data and analyze the following:
§
The general trends of changing positions of young workers in the
changing labour market in the past decade and prospect.
§
Problems of young workers in the labor market such as
unemployment, skill training and retraining and career building.
§
Problems of working conditions of young workers such as wage,
working hours and Social Safety Net.
§
Social problems and young workers such as HIV/AIDS, drugs, housing,
education and juvenile delinquency.
The survey was undertaken as part of
Confederation of Free Trade Unions-Asian and Pacific Regional Organization
(ICFTU-APRO) who is conducting a regional survey on Situation of Young Workers.
Their objective of the survey is to draft a comprehensive policy statement on
young workers to be submitted to the 18th. Regional Conference.
c)
Overview on
Malaysia's Economy and Employment Policies
Malaysia is rich in natural
resources and primary commodities, and the country's economic grow at a very
satisfactory rate, 8 % per year from 1988
- 1997. It has reduced
unemployment and enjoying full employment rate since mid 1990 though the
country has 1.7 % foreign workers (Bank
Negara 1998).
Malaysia is also a multi racial country
with 2 main national groups- Bumiputeras and Non-Bumiputera. Bumiputeras refer
to Malays and other indigenous people while Non-Bumiputera refer to other
Malaysians of Chinese, Indian, Caucasian or other ethnic origins. It is
important to mention in the study that in Malaysian situation race is the key
factor that determines businesses, education policy, social policy, cultural
policy, entry into educational institutions, discounts to purchasing houses and
others as put it by Dr. Kua Kia Soong in his paper 'Racial Eyesores on the
Malaysian Landscapes'. Racism, which
has its origin in the colonial divide and rule strategy, continues to be used
as main pillar of our economic planning. The New Economic Policy (NEP: 1970
-1990) and the New Development Policy
(NDP: 1991-2000) as well as the Vision 2020 are all visions which is
based on the foundation of the racial set-up in the country. The vision talks
about a single, united and prosperous Malaysia by the year 2020.
In a paper presented by
Takeshi Inagami (Employment and Training Department, ILO) on Labour Market
Policies in Asian Countries which was published in 1998, summarized the labour
market and labour policy trend in Malaysia as follows:
"One of National Economic Policy's objectives,
in the context of plans for economic growth, was the elimination of poverty.
Another strand was the Bumiputra policy of seeking a re-structuring of
employment, which corresponded to the ethnic composition of the population. The
NEP achieved clear results in terms of employment creation, but was less
obviously successful in terms of "re-structuring society and
employment". In the early 1980s the development of heavy and chemical
industries under the ISI (ISI: import substitution industrialization) policy led
to the incurring of huge foreign debts, and in order to repay these debts
Malaysia came, from the mid-1980s onward, to adopt a fresh strategy, one of
EOI (EOI: export orientated
industrialization) led by foreign investment.
Two distinct phases of the EOI policy can be identified: in the late
1980s the approach was one of low-cost labor-intensive EOI, whereas from the
early 1990s onwards there was a shift of emphasis towards one of high
value-added, technology-intensive and capital-intensive industrialization."
Takeshi also reported that
in accordance to the EOI-foreign capital-led character, which is
capital-intensive and technology-oriented, the government played a central role
in creating appropriate human resource development policies. The function of
the private sector has gradually come to receive more emphasis. These measures
can be seen in general terms as a response to the qualitative component of the
labour shortage.
The second Industrial Master Plan (1996-2005) is a blueprint to guide Malaysia's quantum leap into the 21st Century as an industrial nation and a global market player. It calls for fundamental shift in emphasis, moving beyond manufacturing operations to include R & D and design capability development of integrated supporting industries, packaging, and distribution and marketing activities. Similarly, the government's policies via seventh five-year plan (1996-2000) also reported that economic constraint such as labor and skills shortage, productivity deficit would be addressed by turning Malaysian manufacturers into major players in the world market and by weaning them away from labor intensive industries. The plan also promotes investment in science and technology and emphasizes human resource development, especially greater efforts to address growing labor shortages in manufacturing, agriculture and services. It also reported that job creation would be replaced by minimization of labor inputs and maximization of quality and skills.
Based on the
Malaysian government's labour policy, it indicates that employment
opportunities are growing in Malaysia but unemployment rate seems to be
increasing too. Table 1.1 provides Malaysia's Key Economic Data between the
year 1995 to 2000. The National Income
based on Real Gross Domestic Product growth shows a 4.4 % decline over the past
6 years.
According to the
Ministry of Finance Malaysia, in it's Economic Report 1999/2000, Malaysia's Income per capita in
1998 is RM12, 134 (-1.5% growth) and increased 1.4% to reach RM12, 305 in 1999,
It is estimated to grow 4.7% (RM12,
883) in the year 2000. On the other hand, data on mean gross household income
and income share by income group in 1999 shows
that the top 20% own 50% share of the national income while the bottom
40% only own 14% (Human Development Report, 1996). According to a paper presented by Samsudin Hitam on 'Bumiputera
Achievements in Economic Sector 1999,' the average income of the bottom 40% is
only RM840 while the top 20% earn an average monthly income of RM7, 006. Anyhow, according to seventh Malaysia plan,
the absolute poverty rate has dropped from 20.7% in 1985 to 6.8% in 1997 but
many academicians as well as community and labour groups are not happy with the
official poverty line of 4.6 people each living in monthly income of
RM425.
Table
1.1- MALAYSIA: KEY ECONOMIC DATA 1995-2000
|
No. |
Item |
Year |
|||||
|
1995 |
1996 |
1997 |
1998 |
1999* |
2000** |
||
|
1. |
Population
(million) |
20.7 |
21.2 |
21.7 |
22.2 |
22.7 |
23.3 |
|
2. |
Real GDP
Growth (%) |
9.4 |
8.6 |
7.7 |
-7.5 |
4.3 |
5 |
|
3 |
GNP Per Capita (US $) |
|
4,543 |
4,377 |
3,093 |
3,255 |
3,349 |
|
4. |
Labour Force
(thousand)*** |
8,257 |
8,641 |
9,038 |
8,881 |
9,010 |
9,194 |
|
5. |
Labour Force
Growth (%) |
5.4 |
4.6 |
4.6 |
-1.7 |
1.5 |
2 |
|
6. |
Employment
(thousand) |
8,024 |
8,417 |
8,805 |
8,563 |
8,741 |
8,920 |
|
7. |
Employment
Growth (%) |
5.5 |
4.9 |
4.6 |
-2.5 |
1.7 |
2.1 |
|
8. |
Unemployment
Rate(%)*** |
2.8 |
2.6 |
2.6 |
3.2 |
3 |
3 |
|
*Estimates |
|||||||
2.1 General Trend Of Changing Positions Of Young Workers In The Changing
Labor Market, 1990-2000.
a)
Labour Force and Employment
Trend, 1990 -2000
According to the seventh (1996-2000) and the eighth
(2001-2005) Five year Malaysia Plan, youth population between the age group 15
-24 has increased 2.1 % a year from 3.58 million in 1990 to 3.97 million youths
in 1995. A further increase of 1.6 % is recorded from 4.03 million in 1995 to
4.37 million in the year 2000 as stated in the below table. It is estimated
that in year 2005, youth population in Malaysia between the age group 15-24
would grow to 4.98 million while those between the age 25-39 would increase to
5.83 million. Youths between the age
group 15-39 made up of 42.6% of overall Malaysia's population in 1995 and in
2000, they are reduced to 41.9%, still it is a very high proportion of the population.
Table 1.2- Malaysia: Distribution of Youths by Age Group, 1990-2000
(Million)
|
Age Group |
1990 |
% |
1995 |
% |
2000 |
% |
|
Less than 15 |
6.75 |
37.5 |
7.33 |
34.7 |
7.71 |
33.1 |
|
15 - 24 |
3.58 |
19.9 |
3.97 |
19.5 |
4.37 |
18.8 |
|
25-39 |
3.99 |
22.2 |
4.85 |
24.1 |
5.4 |
23.3 |
|
Above 39 |
3.66 |
20.4 |
4.54 |
21.7 |
5.79 |
24.8 |
|
Total |
17.98 |
100.0 |
20.69 |
100.0 |
23.27 |
100.0 |
Source: 7th.
& 8th.Malaysia's 5-Year Plan 1996-2005

Following is the distribution of labor force
according to age group, which is the total percentage of employed and
unemployed workers over a decade, abstracted from the Department of Statistics
Malaysia. Both the dispositions shows that youth population between the age group 15-24
is increasing gradually over the year yet the labor force for the same age
group is descending, for both male and female in Malaysia compare to those
between the age group 25-54.
Table 1.3-
Malaysia: Percentage Distribution of Labor Force by Age Group, 1990-2000
|
Age Group |
1990 |
1992 |
1993 |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
|
15-64 15-24 25-54 |
100.0 29.2 65.1 |
100.0 27.8 66.2 |
100.0 26.7 67.6 |
100.0 25.4 68.7 |
100.0 25.7 68.5 |
100.0 25.1 69.1 |
100.0 23.8 70.4 |
100.0 23.8 70.6 |
100.0 23.3 70.9 |
Source:
Department of Statistics, Malaysia
The following table shows a comparison
of total labour force by age group and gender for the year 1990 and 2000.
Table1.4-
Percentage distribution of Labour Force by Age Group and Sex, 1990 & 2000
|
Age Group |
1990 |
2000 |
Difference |
|
Total 15-19 20-24 25-29 30-34 |
10.7 18.5 16.8 14.1 |
6.7 16.6 17.0 14.6 |
-4.0 -1.9 +0.2 +0.5 |
|
Male 15-19 20-24 25-29 30-34 |
9.9 17.2 16.8 14.2 |
6.2 15.1 16.8 15.0 |
-3.7 -2.1 0 +0.8 |
|
Female 15-19 20-24 25-29 30-34 |
12.1 20.8 16.7 13.8 |
7.6 19.5 17.5 13.9 |
-4.5 -1.3 +0.8 +0.1 |
Source:
Department of Statistics, Malaysia
Table
1.5- Malaysia: Percentage Distribution of Employed Persons
By
Age Group 1990-2000
|
Age Group |
1990 |
1992 |
1993 |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
|
15-24 25-34 35-54 |
27.1 31.5 35.4 |
26.1 31.8 36.0 |
24.9 31.9 37.4 |
23.8 31.5 38.7 |
24.6 31.2 38.3 |
23.9 31.3 38.9 |
20.8 31.6 41.2 |
22.2 31.7 40.2 |
21.9 32.1 40.1 |
Source: Manpower Department
Malaysia's period of EOI industrialization which
started since early 1970 caused a large internal migration of youth, especially
women from the rural to the more urban areas of the Free Trade Zone. Many of
these women workers are generally involved in the labor intensive manufacturing
work (textile, food, and electrical and electronic industries). The
participation of women in the labor force has substantially increased over the
years 47.8% in 1990 and 46.7% in 2000. Nevertheless compare to men's labor
force participation which is comprised of 85.3% in 1990 and 83.3% in 2000,
women participation is considered low.
The following chart shows total number of employed
young worker by gender and age in year 1990 and 2000. It clearly demonstrates
the number of women young worker in employment is much lower. Total number of
male young worker in employment in 1990 and 2000 is 4310.7 and 6,086.2 each
respectively compared to female young worker employment 2374.3 and 3,235.5. The
proportion of employed men workers between the age group 15 to 34 compared to
the total male employed persons is 43.1
% in 1990 (2451.2) and 47.8 % in 2000
(3175.6). Whereas women workers
between the age group 15 to 34 made up of 38.2 % in 1990 (1,468.1) and 42.6% in
2000 (1,857.6). Besides that, the
entire group has shown growth between the year 1990 and 2000 except for those
aged 15 to 19 which could be due to the factor that job opportunity for them has
dropped or they are still in school or training institution.

Source: Department of Statistics,
Malaysia
According to the Malaysia's seventh and eighth
5-year plan, number of working youths in 2000 was 2.3 million compared to 1.86
million in 1995 and 1.81 million in 1990. The government suggests that the rest
of the youths are either just finished their study or training or still in
their tertiary education level. As shown in Table 1.6, percentage of youths
working in the agricultural sector has declined from 19.3 % in 1990 to 13.1% in
1995 whereas in the manufacturing sector, there was an increase from 32.8 % to
37.9%. The government also claims that job opportunities in the manufacturing
sector are wide since it contains 34.1% working youth in 2000.
Number of working youths in urban area also shows
significant increase from 33.6% in 1990 to 56.5% in 1995 which implies growing
number of youths migrating from rural to urban area to find a better job
opportunities. Government statistics also points changes in employment pattern for
instance youths in the professional and technical category has increased from
7.1% in 1995 to 7.4% in year 2000.
Table 1.6:
Malaysia-Number of Employed Youths by Sector in 1990,1995 & 2000
(%)
|
Sector |
1990 |
1995 |
2000 |
|
Agricultural, Forestry,
livestock & fishing |
19.3 |
13.8 |
29.9 |
|
Mining & Quarrying |
0.3 |
0.3 |
0.2 |
|
Manufacturing |
32.8 |
36.2 |
34.1 |
|
Construction |
6.1 |
7.0 |
5.8 |
|
Electric, Gas
& Water |
0.2 |
0.2 |
0.1 |
|
Transport, Storage
& Communication |
2.6 |
3.4 |
2.5 |
|
Wholesale &
Retail Trade, Restaurants and Hotels |
20.5 |
19.7 |
14.5 |
|
Finance, Insurance, Real Estate & Business Services |
3.4 |
5.4 |
2.0 |
|
Other Services (Community, social & personal services) |
14.8 |
14.0 |
10.9 |
Source: 7th.
& 8th.Malaysia's 5-Year Plan 1996-2005
b) Labour Market:
Unemployment
ILO defines youth unemployment as those people who
have not worked for more than one hour during the short reference period (generally, the previous week or day) but
who are available for and actively seeking work. The general economic
definition of unemployment is defined as a state in which there are qualified
workers who are available for work at the current wage rate and who do not have
jobs.
From 1995 to 2000, more than 1.3 million persons has
entered the labour market with an average of 254,400 persons a year but number
of labour force in the age category 15-24 has reduced due to longer universal
education period from 9 to 11 years (Eighth Malaysia Plan).
In 1990,
72.4% young workers between the age group 15-24 were unemployed compared to
65.6% in 2000. Meanwhile 16.4% youth between 25 - 34 years old were unemployed in 1990 compared to 18% in 2000.
Table 1.7 compares percentage distribution of unemployed young workers in
Malaysia, 2000 by gender and stratum. The highest percentage of youths without
work is those between the age group 15 - 24 and women young workers are
relatively more than men workers without employment. It also indicates that
more young workers are unemployed in the rural area compared to urban and young
workers between the age group 15-34 made up a large portion, 83.6% out of the
total unemployed workers in Malaysia. This suggests that unemployment among
young workers is a serious problem to peruse.
Meanwhile Malaysia's Department of statistics in its
report also establishes that in 2000, unemployed young workers between the age
group 15-19, are the highest number 48.7%, who have not worked before while
40.3% youth between 20-24 also have not worked before. Those who have worked
before are 18.7% and 33.7% for each category. Whereas the adults between 25-29
and 30-34 show 16.4% and 7.2% each have working experience compared to those
without working experience only about 7.4 % and 0.7% each.
Table 1.7 - Percentage Distribution of Unemployed
Persons Age Group, Stratum and Gender, Malaysia, 2000
|
Age Group |
Total |
|
|
Urban |
|
|
Rural |
|
|
|
|
Total |
Male |
Female |
Total |
Male |
Female |
Total |
Male |
Female |
|
15-19 |
29.5 |
27.7 |
32.7 |
24.3 |
23.9 |
24.9 |
35.1 |
32.0 |
40.0 |
|
20-24 |
36.1 |
33.8 |
40.1 |
37.6 |
34.3 |
44.1 |
34.4 |
33.2 |
36.4 |
|
25-29 |
13.2 |
13.1 |
13.3 |
13.5 |
12.9 |
14.7 |
12.8 |
13.3 |
12.0 |
|
30-34 |
4.8 |
5.5 |
3.7 |
5.1 |
5.6 |
4.2 |
4.5 |
5.3 |
3.2 |
|
Total |
83.6 |
80.1 |
89.8 |
80.5 |
76.7 |
87.9 |
86.8 |
83.8 |
91.6 |
Source:
Department of Statistics, Malaysia
The following chart shows that the
number of unemployed persons registered with the Manpower Department has
lessened from 1992 to 1996 and at the same time job vacancies are relatively
lower than new registrants with ratio 1:1.2 in 1992 and 1:1.5 in 1996. The
chart displays that placements by the Department are very much lower compared
to the number of new registrants.

Source: Manpower Department,
Ministry off Human Resource.
Table 1.8-
Malaysia: Registered Unemployed and Percentage by Age, Level of Education and
Employment Status (1990-1999)
|
|
|
Age |
|
Level of Education |
Employment Status |
|||||
|
Total |
15-19 |
20-24 years |
25-29 |
30 and above |
Below LCE |
LCE |
MCE And above |
|
Wholly unemployed |
|
|
1990 |
54,387 |
10.9 |
56.1 |
22.3 |
10.6 |
19.9 |
17.4 |
62.7 |
|
88.4 |
|
1991 |
50,159 |
24.6 |
47.8 |
16.6 |
11.0 |
20.0 |
18.2 |
61.8 |
|
86.7 |
|
1992 |
42,344 |
25.2 |
46.5 |
16.5 |
11.8 |
199.7 |
18.9 |
61.4 |
|
85.1 |
|
1993 |
31,617 |
27.4 |
44.2 |
16.0 |
12.4 |
18.9 |
19.4 |
61.7 |
|
85.3 |
|
1994 |
26,445 |
28.6 |
42.8 |
15.1 |
13.5 |
19.0 |
19.6 |
61.4 |
|
83.0 |
|
1995 |
25,546 |
30.5 |
42.9 |
14.0 |
12.5 |
18.1 |
17.4 |
64.5 |
|
80.2 |
|
1996 |
21,668 |
30.2 |
44.1 |
13.2 |
12.5 |
14.9 |
20.7 |
64.4 |
|
|
|
1997 |
23,762 |
27.1 |
44.8 |
13.3 |
14.8 |
9.0 |
14.3 |
53.4 |
|
81.7 |
|
1998 |
33,345 |
23.3 |
46.0 |
15.6 |
15.1 |
11.3 |
19.1 |
69.6 |
|
81.5 |
|
1999 |
31,830 |
23.6 |
46.8 |
16.7 |
12.9 |
9.2 |
18.3 |
72.5 |
|
78.2 |
*Covers all registrants with
or without work experience and institutional training and those who were employed,
self-employed or
family
workers or wholly unemployed.
Source: Manpower Department, Ministry of Human Resource
Based on Table 1.8, total number of unemployed
persons registered with the Department has reduced 41.47% from 54,387 in 1990
to 31,830 persons in 1999. The highest numbers of registered unemployed are
young workers between the age group 20-24 years old with an average of 46.2%,
followed by those aged 15-19 years, 25.14% compared with adults aged 30 and
above, only 12.7%. The data also indicates that most of the registered
unemployed has better education level and their numbers are growing each year.
According to the Ministry of Finance's Economic Report 2000/1, the number
registrants (active job seekers) with the Manpower Department within the age
group of 20-24 years were the largest in 2000, accounting for 46.4% (16,889
persons) of the total. Those in the age group of 15-19 years, the second
largest group registered a decline of 25.7% (7,866 persons) from 1999 while
20.1% or 7,321 job-seekers were those already in the employment but seeking
better job opportunities.
Educational attainment off those unemployed in 2000
shows 65.3% persons have reached secondary school level, the highest compared
to those with no formal education 3.7% while those with tertiary education is
15.2%. Overall statistics proves that more men workers have better education
opportunities compared to women workers either in rural or urban though
relatively in rural area persons with no formal education are higher as well as
the women workers in general.
The Human Resource Ministry's Year 2000 Annual
Report recited that through the Planning and Policy Research Section (BPPD),
information on Labor Market indicators were collected. Among the information are on workers
retrenchment, job vacancy, job search, retraining, strike and picket. These reports are then analyzed to provide
labor market report for weekly, monthly, quarterly and yearly. According to the data, an increase of 14% or
108,318-job vacancies from 1999 to 123,484 vacancies in 2000 were reported to
the Manpower Department. The highest vacancy recorded in year 2000 is in the
manufacturing sector 54.6%, followed by Agricultural, Forestry and Fishing,
25.4%. New registrant who is searching
for a job and registered with the Manpower Department has decreased 8.2% from
112,835 in 2000 to 122,920 persons in 1999.
The
Ministry also reported that retrenchment is showing a downward trend. In 2000,
it descended 32.4% to 25,236 persons compared to 37, 357 in 1999. In the year 2000, 55.15% (13,920) workers
retrenched are from the manufacturing sector. Though the percentage of women
workers retrenched in 2000 has increased, the actual number has dropped to
13,491 compared to 36,284 in 1999. Majority of them is from the manufacturing
sector.
Table 1.9- Malaysia:
Unemployment Rates (%), 1990 - 2000
|
Sector |
1990 |
1991 |
1992 |
1993 |
1994 |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
|
Unemployment Rates * |
5.1 |
4.3 |
3.7 |
3.0 |
2.9 |
2.8 |
2.6 |
2.6 |
4.9 |
3.0 |
3.0* |
Note:
*Estimates by Economic
Planning Unit
Source: Economic Planning Unit
and Ministry of Human Resource
Under the unemployment
category, it is also important to analyze the situation of those labeled as
'outside the labour force'. Malaysia's Statistics Department, defines them as
persons not classified as employed or unemployed including housewives, students
(including those going for further studies), retired or disabled persons and
those not interested in looking for a job. While the author of Youth Unemployment
and Employment Policy, 2001 describes Outside Labour Force as "discouraged
workers", these peoples are actually wish to work but are not actively
seeking job since they see no possibility of obtaining gainful employment. If
and when the chances of finding work improve, some of them would return to
employment without ever having been classified as unemployed.
Information on part-time, casual or temporary
workers in Malaysia is very limited. Anyhow it is a common view that those
considered as 'outside labour force' are the ones usually engaged in such part
time, and temporary job especially school students waiting for their results or
housewives who have children to take care would engage in part time job. Most
of the part time or temporary jobs are available in Sales Departmental Stores,
in the manufacturing sector, food services, clerical line and so on. There is also a current
trend where women workers are being employed in home base manufacturing work,
which goes unrecorded and they are part of the cheap labour scheme.
In Malaysia about 33.8% youths between 15 -19 and
11.3% of those between 20-24 are considered outside labour force in 2000
compared to 31.1% and 10.3% each in 1995. Comparing young workers outside
labour force in urban and rural area for those between 15-19 years old,
statistics indicates in rural there are more of them with difference within 1.7
to 3.5% in 1995 to 2000. Adults between
25-34 made up an average of 9.6% in 1995 and 8.2% in 2000. Male workers aged
15-19 is the most in outside labour force in year 2000 that is 64.5% compared
to women workers only 23.7%.
About 35.2% of those outside labour force are still
schooling while about 55.5 % are involved in house work with 72.7% are women.
While those not seeking job due to disability are about 1.4% (2000) and 2.1% in
1995 compared to those who are not interested is 0.5% (2000) and 0.9% (1995).
Majority of the persons outside labour force has secondary level education
(55.7%) and tertiary education (12.2%) and only about 9.3% have no formal
education as at year 2000.
c) Skill Training &
Career Building
Why
is the number of youth unemployment, especially those between the age ranging
15 -24 and those with higher education are higher? Their numbers also high
among those who have not worked before under the unemployment data. Could it be
caused by insufficient supply of skills on the part of the young workers or are
they not given enough opportunities to gain the skills and experiences needed
in the labour market to secure a decent job? According to Niall O'Higgins in
his book 'Youth Unemployment and Employment Policy', the skills level of an
individual does effect that person's employment prospects because it
contributes in determining the quality of work, impact on wages and in long run
in the growth of employment.
In Malaysia, majority of the youths is in the
production line as described in Table 2.0, with 43% in 1990 and increased to
44.5% in 1995 and dropped to 39.9% in 2000. The second highest number of youths
are working in agricultural, forestry and fishing which has dropped from 19.1%
in 1990 to 14.9% workers in 2000. Whereby number of youths working in the
professional, technical and related line has grown from 4.8% in 1990 to 7.4% in
2000. Percentages of youths working in the administrative and managerial level
are very low. The data indicates that
number of unskilled or semi-skilled youth workers in Malaysia are much higher
compared to the professionals and skilled workers.
Besides
that, it was also found that number of female workers employed in the
manufacturing industry has increased from 10.7% in 1957 to 50.7% in 1990. Women
workers constitute about 80% of the labour force in the electronic industry and
it's followed by textiles and clothing, about 75% in 1990's. The data, which
was obtained from a book titled 'Malaysia's Economy in the Nineties' also
reported that the proportion of skilled full-time female factory workers since
1973 to 1990 in all manufacturing industry has increased from 42.0 to 62.7%.
Unskilled workers too grew from 46.0 to 60.0% while semi-skilled workers rise
from 49.3 in 1983 to 53.7% in 1990. The limited data on the proportion of
skilled and unskilled workers aren't much available based on age group.
Table 2.0:
Malaysia - Percentage Distribution of Employed Youths by Occupation,
1990, 1995 and
2000
|
Occupation |
1990 |
1995 |
2000 |
|
Professional, Technical and Related Workers |
4.8 |
7.1 |
7.4 |
|
Administrative and Managerial Workers |
0.3 |
0.7 |
0.9 |
|
Clerical and related Workers |
10.3 |
14.4 |
14.2 |
|
Sales Workers |
11.3 |
10.5 |
11.7 |
|
Service Workers |
11.2 |
9.1 |
11.0 |
|
Agricultural, Animal Husbandry &
Forestry Workers, Fishermen And Hunters |
19.1 |
13.7 |
14.9 |
|
Production and Related Workers,
Transport, Equipment Operators and Labourers |
43.0 |
44.5 |
39.9 |
Source: Seventh
& Eighth Malaysia 5 Year Plan.
The following chart displays that the total number
of employed women workers in 2000 are only fifty percent (3235.5 thousand) of
total men workers (6,086.2 thousand). The number of male workers in the
production line is higher as well as women workers compared to other
occupation. Only in clerical line women workers (571.5 thousand) are more than
men (418.5 thousand). It is also interesting to note that number of female and
male workers in the professional and technical and the service line are
relatively at the same level compared to administrative, agricultural and
production line, which has a wide gap. Once again it emphasis that the number
of non-skilled and semi skilled workers are higher in number compared to those
skill workers in Malaysia.

Source: Department of Statistics, 2000
Accessible data shows that efforts toward a proper
planning and implementation of various programs to provide and supply necessary
skills to youth are being conducted for more than a decade. According to the
eighth (2001-2005) five year Malaysia plan, the government has reviewed it's
National Youth Policy enacted in 1985 and replaced it with Youth Development
Policy in 1997 in it's effort to bring forth the youths potentials especially
those between the age group 18 to 25. The government has allocated about RM1,
045.8 to 2,741.6 million for youth programs in the country from 1991 to 2000.
Institutions that provide skills training are from Manpower Department,
Ministry of Education, Majlis Amanah Rakyat (MARA), Ministry of Youth and
Sports, Johore State Welfare Department, Ministry of Agriculture, private
institutions and other public training institutions. Between 1995-2000, private
institutions have trained about 40,000 youths. It also reported that number of
youth organizations has tremendously increased from 3,460 in 1990 to 9,000 in
1995 with membership increase from 500,000 to 1.8 million. They are all affiliated with Malaysia's
Youth Council.
Among others leadership training has been given
priority. About 60,000 (1990-1995) and 46,340 (1996-2000) youths have
participated in the leadership training organized by various government
agencies. Programs to encourage entrepreneurship has benefited 1,600 who
received loan for their trading projects and also provided jobs for about 3,650
youths (1990-95). While another 16,970 youths has benefited from the similar
program in the duration of 1995-2000.
Statistics from National Vocational Training Council
(NVTC) under the ministry of Human Resources displays that from 1992 to 1996,
total number off candidates passed the skills test administered by the NVTC at
basic, intermediate and advanced levels has increased from 26,849 persons to
41,731 in 1995 but it dropped to 33,222 persons in 1996. Nevertheless, the
number of candidates enrolled for basic level courses were much higher in that
5 years period, about 124,589 student compared to only 1,858 enrolled for
advanced level courses.
Some of the skill programs or activity managed by
the government as reported in both the five-year plans are Social Service
Program, Youth Development Program, Asia Youth Ship (exchange program with
countries like Japan and South Korea), Cultural Program, Sports Program, Skill
Malaysia and Active Malaysia Program, Healthy Life-style Program,
Rehabilitation Program and Skills Training in both public and private sector to
increase job opportunities for youths besides informal short-term workshops and
training to upgrade skills. Thousands of youths are reported have gained from
all these programs.
According to the Manpower Department's Annual
Report, it has increased it's students capacity from 4,000 to 17,000 students
per year for various long term training via its 20 training institutions
throughout out the country. The
Department's Industrial Training Institute provides some basic 31 courses in 5
main field such as Mechanical, Production, Electrical and Electronic, Civil and
Building and Printing. The courses take between 6 months to 2 years. The number
of students enrolled with the Department's institution has increased from 2,704
in 1996 to 3,193 in 2000 and the highest enrollment was in 1999 with 3,479
students. The Department also conducts short-term courses as per the request of
the employers from both private and public sector. In year 2000 alone about 304
courses were conducted for 5,614 participants compared to 4,273 in 1999.
In Year 2000, the Manpower Department has set up
4-Advanced Technology Training Centre to boost the number of skilled workers in
the Labour Market. One of the training institutes under the Manpower Department
is Centre for Instructor and Advanced Skill training which runs a course known
as National Instructor Training Programme. It produces teaching forces in the
skill training institutions needed for the country. In year 2000, 532 students
are following the courses compared to 445 in 1999. Japan-Malaysia Technical
Institute conducts technical and vocational training program using latest
Japanese technology. In year 2000, it has been training 278 students compared
to 135 in 1999.
The Human Resource Ministry set up skill Development
Fund in December 2000 and its main purpose is to increase number of skill
workers in accordance to the need for knowledge workers for knowledge economy.
Most of trainees participating in the skill training are from rural and lower
income group, thus the loan helps them to reduce financial burden of the
families concern. Anyhow it only started its operation in January 2001. Under
the scheme, the ministry plans to provide loan to those from public and private
sector and also to those taking up part time or full time course. In 2001, it
is expected around 15,000 trainees would apply for the loan.
The Malaysian government has also taken several steps
to secure job to workers who have been retrenched. The Human Resource Ministry
reported that with the help of Manpower Department and the Labour Department,
about 75.23 % of workers retrenched and registered with the Department has been
placed in alternative job in Year 2000 compared to 88.11% in 1999. According to
the Manpower Department, out of 22,785 local workers retrenched in 2000, 6,694
workers registered with the Department. The Department able to find job for
4,917 workers. The number of workers retrenched in 1999 is much higher 35,457
and only 7,548 workers were successfully reinstated.
In 1998, the Ministry also introduced a scheme
called Retrenched Workers Scheme, which has an allocation of about RM5 million.
In year 2000, financial support was approved for 228 workers compared to 426 in
1999 to complete their training course in diploma and certificate level. To
encourage more employers to send their workers for such training, since July
2000, the Ministry has increased its financial support 100% for those in the
technical, computer and quality production field. The Ministry also introduced
Training Support Scheme for small and medium size trading to encourage
employers to send more workers for retraining to improve their skills. The
scheme was started in August 2000 and since than 62 training center has been
approved. Human Resources Development Council's data shows that the number of
Employers registered with the Council especially in the Manufacturing sector
has increased from 3,254 in 1993 to 4,393 in 1996. Similarly in Services sector
though the numbers are small but they too have showed signs of interest with
778 in 1995 to 1,027 employers in 1996. These would help more employees of
these companies to develop and build their carrier.
Despite
of all these programs and planning, youth unemployment and number of skilled
workers in Malaysia are relatively low compared to the number of production
workers and labourers. Why? Are there not enough skill training programs or is
it not reaching the grassroots? Is
there too much of bureaucracy for one to apply for such courses or is it not
affordable or is it ignorance on the part of the youths? Above all is it
because the youths are unable to find a job that suits their choice or is it
because of unsatisfactory pay, bonuses and work facilities or unreasonable
demand from employers and overly strict rules and pressure at work place that
has demotivated and distracted the youths from job market? Most of the
unemployed youths are also in the secondary level education category, which
doesn't guarantee employment. Perhaps, more efforts to place them in vocational
education sector and setting up more youth skill training program in
marginalised communities residential area (long houses, urban settlers, plantation,
low cost housing flats and so on) would help the young ones to secure a decent
job and a better future.
d)
Labour Market Prospect
In the Eighth Malaysia Plan, the number of youths in
Malaysia is expected to grow 2.6% a year from 4.37 million in 2000 to 4.98
million in 2005. Economic Report 2000/2001 forecast the economy to grow at 7%,
employment is projected to increase by 6.2% from 8.999 million to 9.5 million
in 2001. A significant proportion (80%) of the new jobs created will be from
the main economic sectors of manufacturing, construction, wholesale and retail
trade and the hotel and restaurant services.
The youths are expected to
be more talented creative and innovative. The government plans to concentrate
in bringing up youths with more positive values and to prepare them with
knowledge that would ensure continuos development and economic growth. Emphasis
on providing appropriate skills to face the challenge of globalization and
development would be the government's main focus. The number of youths involved
in professional and technical job category is expected to increase while
youth's entry into the job market is believed to be deferred.
3.1 Working
Conditions of Young Workers
a)
Wages
Malaysia is still in the labour intensive phase of industrialization
and it relies on labour intensive production methods and highly exports
dependent. Thus, cheap labour policy has always been its tool to attract more
foreign investment. Malaysia has also choose to import cheap labours from
neighboring countries like Indonesia, Nepal, Bangladesh, and India. The action
also caused intensive supply of unskilled workers in Malaysia and impedes wage
increase in all those sectors that need unskilled workers.
Table 2.1:
Malaysia - Household Ethnic Composition in the Group Earning Top 20%, Medium
40% and Lowest 40% in 1997.
|
Ethnic |
Lowest 40% |
Medium 40% |
Top 20% |
|
Bumiputera |
70.2 |
55.6 |
37.3 |
|
Chinese |
14.4 |
33.1 |
47.3 |
|
Indians |
5.3 |
8.7 |
8.8 |
|
Others |
10.1 |
2.6 |
6.5 |
|
Average Monthly Income (RM) |
840 |
2,202 |
7,006 |
Source:Samsudin
Hitam, Bumiputera's Achievement in Economic, 1999.
Table 2.2:
Malaysia- Household Breakdown in Each Main Ethnic According to
Income Group,
1990 and 1997
|
|
|
1990 |
|
|
1997 |
|
|
|
B |
C |
I |
B |
C |
I |
|
Top 20% |
13.2 |
34.1 |
21.1 |
12.9 |
33.2 |
24.1 |
|
Med. 40% |
37.2 |
44.8 |
47.4 |
38.5 |
46.5 |
47.3 |
|
Low. 40% |
49.6 |
21.1 |
31.5 |
48.6 |
20.3 |
28.6 |
Note: B (Bumiputera) C (Chinese) I (Indians)
Source:Samsudin Hitam, Bumiputera's Achievement in Economic, 1999.
It is very crucial for us to identify who make up
the Malaysian society. If one takes the occupational structure of Malaysian in
the year 2000, professional, technical workers and administrative & managerial workers make up only around
20% of the work-force compared the remaining big bulk which are production
related workers, agricultural and service orientated workers who make up the
remaining 80%.
In an article written by the late Ishak Shari on
Malaysia's Social Agenda in the Globalization Era, he stated that the income
distribution has taken 'U-turn' in
Malaysia from 1990-1997. Gini Coefficient (Pekali Gini) used to measure the
income disparity shows an increase from 0.445 in 1990 to 0.470 in 1997. The
question of why income disparity is getting wider and wider since 1990 is
answered by his hypothesis that the government's intention to integrate
Malaysia's economy with global economy has boomed the industrial sector. More
capital and technology intensive models of production needed to be encouraged.
This has led to great demand for skilled labours while the demand for unskilled
labours is countering a slower growth. Since the supply of skilled labours is
limited so their income is increasing higher and higher compared to those of
unskilled workers. Hence, the income disparity widens.
For the last few years, various Trade Unions and
community organisations are raising issue of Minimum Wage but till to date the
government of Malaysia is reluctant to legislate a minimum wage law. The idea
of Minimum Wage was strongly opposed by Malaysian Employers Federation while
Trades Union Congress says Minimum Wage would increase living standard of
workers especially thousands of lowly paid wage earners like plantation
workers, bus drivers and production workers.
In Malaysia, the highest number of workers are in
the agricultural and manufacturing sector, followed by Wholesale and Retail
trade, Restaurants and Hotels with each has 1,738, 1,333 and 1,218 thousand
workers in 1990. The numbers has increased in 2000 to 1,187.7 thousand workers
in Agricultural, Forestry, Livestock and Fishing, while 2,616.3 thousand
workers in Manufacturing sector and 1,469.6 thousand workers in Wholesale and
the other services. As mentioned
earlier the number of youths employed are also in the same order as above as
described in Table 1.6.
Table 2.3:
Malaysia - Average Monthly Wages of Workers in Selected Sectors, Peninsular
Malaysia. 1981-1990
|
Year |
Rubber Estates |
Manufacturing Companies |
Construction Companies |
|
|
Nominal Real |
Nominal Real |
Nominal Real |
|
1981 |
RM272 RM248 |
RM440 RM371 |
RM455
RM415 |
|
1990 |
RM353 RM253 |
RM657 RM471 |
RM734
RM527 |
|
% increase from 1981 to 1990 |
2 % |
27% |
27% |
Real = 1980
dollars
Source:
Manpower Resource Study for the Northern States. Final Report, Volume 1: Table
6.1 (RMA-Perunding Bersatu)
According to the president of Trade and Industry,
Malaysia Tan Sri Kazumasa Suzuki, the cost of labour, particularly in the
manufacturing sector is not a very significant factor because it contributes to
no more than 10% of the total production cost (Business Times, 1996). That
means the increase in wages is of little impact to capital. In a survey
conducted by the Malaysia's Trade Union Congress (MTUC) via its unions in year 2000, shows that 46.2% workers are
getting RM300 and about 30.8% earning about RM400 while 15.4% workers are
earning an average of RM500 and the rest, 7.6% are at the salary level of
RM200. MTUC's study on wage scales in
165 companies showed that even in major towns, unskilled general workers are
paid as low as RM300 to RM350 per month.
They conclude that 46.2% of the company's involved are paying a minimum
wage below RM400 per month while 15.4% of the companies pay more than RM500.
MTUC is seeking a minimum wage of RM900, which is justified with minimal need
for survival. On the other hand, the government statistics department shows an
average mean monthly gross income from 1995 to 1999 is about a minimum of 1,284
to 3,456 while expenditure per household is about 1,161 to 1,631.
Jomo K.S., 1994 quoted that an average monthly wage
of all full time paid factory workers are RM463 in 1990 at current prices
whereas those non-factory workers of all full time and part time earned RM1,
259. Malaysia's Economic Report 2001/2
says that the average wage per worker in the manufacturing sector increased to
RM1, 455. Minimum monthly wages of RM325 for oil palm plantation workers were
agreed when actually the workers are fighting for a monthly wage of RM750.00.
With the low unionization of labour force and as
well as the absent of the independent democratic national union, has expose the
workers into very weak bargaining negotiation power compare with other
industry. With a labour force of about 9.6 million, only 8% of the workforce
are unionized. Today, there are about 563 unions and total union membership is
734,037 but more male (63.7%) than female (36.4%) union members according to
the 1999 figure. Hence, the position of
the labour force in Malaysia is in the sadden condition. Some of the community
organizers interviewed on the issue also related their concerns as follows:
·
Currently
due to US economic slowdown, we have around 1,000 to 2,000 workers being
retrenched in a monthly basic. This year itself (2000), more than 10,000 have
been retrenched. 80% of these workers are from the manufacturing sector. The
manufacturing sector once again topped the number of layoffs with 53.8% or
45,000 workers in 1998. The MTUC plea for the government to set up a special
retrenchment fund has fallen on deaf ears for the last 5 years. The following
Table 2.4 provides the latest retrenchment figures in various sectors.
|
|
|
Sector |
1999 |
1999 |
|
Manufacturing |
19,791 |
13,019 |
|
Finance,
Insurance, Real Estate and Business Services |
2,583 |
3,948 |
|
Community,
Social and Personal Services |
1,691 |
84 |
|
Wholesale and
Retail Trade, Restaurant and Hotel |
4,114 |
1,788 |
|
Transport,
Storage and Communication |
681 |
699 |
|
Construction |
2,433 |
1,182 |
|
Mining and
Quarrying |
348 |
200 |
|
Agriculture,
Forestry, Livestock and Fishing |
3,757 |
2,280 |
|
Total |
35,398 |
23,200 |
Source: Ministry of Human Resource, Annual Report,
2000
·
Another
major problem is when a company closes down. The workers will be left in a
lurch. The company Act considers workers as “unsecured creditors” and only
gives priorities to unpaid wages only. Most times workers lose out in other
bonuses and retirement benefits.
Other side effects:
·
Workers
threatened to be more disciplined, docile and obedient.
·
Freeze
in overtime, bonus and annual increment.
·
Forced
pay cuts and employers have abused freeze in bonus.
Young workers being the
largest proportion of the work force are also seems to be in the largest
segment of those in the medium and lowest income group as displayed in Table
2.0 and 2.1. Besides they are also experiencing great hardship when the
companies are closed down or forced resignation or pay cut and voluntary
retrenchment scheme are imposed on them. Employers Federation in Malaysia
believe that the 'continuos economic development will inevitably improve the
welfare of wage earners because the increased prosperity will make possible
increase in wage." Unfortunately, in the decade proceeding the economic
crisis, at a time when Malaysian companies enjoyed double-digit growth in
profits, wages grew in double digits only for professionals and white-collar workers.
General workers enjoyed an average wage increase of below 5%, a negligible
amount taking into account inflation (Premesh Chandran, 1999). Based on the
facts obtained, it indicates that contemporary skill training and better
education attainment might be one approach for young workers to earn better
income and the government must enact a minimum wage law for a stable social
development.
b)
Working Hours
Malaysia's Employment Act
says that the maximum number of working hours permitted is 8 hours in one day
or 48 hours in one week. At the same time under mutual agreement, a spread-over
period of not exceeding 10 hours in a day is permitted. Further more with the
written request from the Director General of Labour, an employer can enter a
working contract to the maximum 12 hours a day or 72 hours per week. In
Malaysia, shift work which means work need to be carried out continuously
appears in 3 shift, usually it's from 7am to 3pm (1st. shift), 3pm
to 11pm (2nd. shift) and 11pm to 7am (3rd. shift). The
law allows employers to enter contract of service which requires the employees
to work more than 48 hours in any one week and more than 8 hours a day up to a
maximum of 12 hours a day.
For young workers aged 15 to
16 years old, the Employment of Children and Young Persons Act, 1966 which
allows light work in factory, offices, workshop, hotels and so on is permitted
in any period of consecutive days to work for not more than 6 days. Besides the
law also allows them to work not more than 7 hours a day or 8 hours if he is an
apprentice.
Due to the loopholes in the
law, employers using various tactics to exploit all young workers (15-34) to
gain maximum profit in the name of productivity and quality by forcing the
workers to work longer hours. This mostly happens in the manufacturing sector.
Many unpublished data and an
informal interview and discussion with factory workers in Selangor by community
organisations reveals the following on the issue of long working hours in
Malaysia:
§
The
state has played crucial role in facilitating the process of deregulate the
labour law in order to provide so called attractive, cheap and competitive
labor force for the sake of globalisation, EOI industrialisation process and
the coming of the TNCs into the country. Especially, registration that is
related to women was changed several times. Before the seventies, women were
not allowed to work after 10.00 p.m. except in the essential services such as
nursing. But, the law was amended in 1968 to allow women to work until 11 p.m.
After that, the law was changed again (1970) to allow women workers to work 3
shifts in the TNCs with the qualification that the Minister deemed it would not
cause inconvenience to these women workers. During the economic boom, the
workers even asked to work during the rest day on Sunday and as well as public
holidays.
§
Most
workers have to sacrifice their rest hours and leisure, as they need more money
to survive. Most workers do overtime and double jobs to maintain high cost of
living or to maintain current lifestyles.
It is common for workers to work 12 hours in a row. Practices such as 48
hours work in 4 days and 3 days rest day besides compulsory 12 hours working
with forced overtime with only half an hour break is befalling in Malaysia.
There are no suitable premises for relation either at work places during
work-breaks. Even the usual rest days
that falls on Sunday is becoming a working day. Any one other day in a week
become a rest day while in some cases no rest day at all. Amendments have been made to the law to
enable less restriction on shift work and calculation of hours of work. Number
of annual leave granted to workers in Malaysia is quite low. Only about 8 days
for those who worked less than 2 years and 12 days for those working 1-5 years
and only 16 days for workers working more than 5 years. The employers are very
stringent in even approving the annual leave instead the employers are
manipulating the workers to take compulsory annual leave during the
§
The
government has introduced 5 working days in a week (Saturdays are declared off
day), which is not compulsory for all sectors. Only on the first and third week
of a month, Saturdays are off day for government sector, which certain service
sectors like banking department and semi government departments adopted. While
many sectors still practicing the old system whereby Saturday is half-day
working day. Unfortunately both the system is not being exercised in the
manufacturing and production line except for those working in the office.
Adequate leisure
and reasonable working hours is important to any young worker. It's is
important for them to have the time to spend with their families and friends
especially after spending long hours of tiring and straining working
conditions. Usually leisure time is
also used to acquire better education in various fields including cultural and
other social activities, which establishes human bond and healthy human
development. Denying the young workers right to a reasonable rest hours and
leisure time might lead to other social illness as a diversion from the hectic
and restless way of life.
c)
Social Safety Net &
Health
In cases of unemployment,
sickness, industrial accidents and diseases or other incapacity, young workers
should enjoy full social insurance protection. Social insurance protection
should also be extended to any dependents of the young insured person (ICFTU,
1975).
In Malaysia, social security
is accepted as protection which society provides for its members through a
series of public measures either financed by federal taxation or compulsory
contribution by employer and employee. Social Security is enforced through
legislation in order to protect the population against economic and social
distress. Malaysia's Employee's Social Security Act, 1969 was implemented in
1972 and it covered the whole of Malaysia in 1987. All firms throughout
Malaysia employing one or more staff earning up to RM2, 000 are required to
insure such employees with the SOCSO.
Among others, the provisions of the act do not cover those earns above
RM2, 000 a month, a domestic servant, any person detained in any prison,
correctional school, all agricultural workers who are employed for cultivating
and harvesting paddy. Currently amendments were made in the law to provide
coverage for 'commuting accidents' SOCSO's main objectives are:
·
Economic
security by way of providing compensation;
·
Provision
of medical care;
·
Rehabilitation
(physical and vocational) to ensure that the worker returns to society and self
reliant;
·
Promotion
of industrial safety and other activities in accident prevention.
The objectives are attained via Employment Injury
Scheme and Invalidity Pension Scheme. Some of the benefits from the schemes
are:
§
Temporarily
disabled worker is given 80% of the average daily wage for each day disablement
and 90% for permanently disabled cases.
§
Dependants
of an insured employee who dies entitled to receive the dependent's daily rated
benefits.
§
Funeral
benefits and full medical benefits.
Number of cases under Social Security Organisation
from 1997 to 1999 was 86,589, 85,338 and 92,074 cases. Is Malaysia's various industries provide
jobs that are save enough for our young workers? Are sufficient safety measures
being taken or are the young workers exposed to industrial risk? Based on the obtainable data from SOCSO
annual reports, the number of accidents reported since 1990 shows an increase
from 121,104 to 133,293 accidents in 1993 and then it starts to drop from
122,688 in 1994 to 92,074 in 1999. Whereas the number of accidents excluding
commuting accidents also raised from 121,104 accidents in 1990 to 124,503 in
1992 and after that it drops from 121,593 in 1993 to 18,309 in 1999. But it is
quite alarming when the number of commuting accidents reported are increasing
every year. From 5,516 accidents in 1992, it reached 14,721 in 1995 and further
up to 18,309 accidents in 1999. The drop in the number of overall accidents
reported is a good sign, nevertheless the total number of accidents reported in
Year 2000 has increased to 110,030. It means about 301 industrial accidents
occur a day and every hour 12.5 accidents occurs and it is also reported that
at least 3 deaths happens a day (Arutchelvan, 2000).
The highest number of industrial accidents is in the
manufacturing sector for the past decade. In 1993, 71,688 (53.3%) industrial
accidents occurred in the manufacturing sector compared to 14,744 reported
accidents in 2000 with 112 death. Unfortunately most of the young workers are
also in the manufacturing sector. Table 2.3 provides data on industrial
accidents reported to the Social Security Organisation and Labour Department
from 1992 to 1996.
Table 2.5:
Malaysia- Rates and Number of Industrial Accidents Reported by Type of
Accidents, 1992 - 1996.
|
Year |
Total |
Fatal |
Disablement |
Accident Rate per thousand
Workers |
Fatality Rate per million
workers. |
|
1992 |
132,982 |
888 |
132,094 |
19 |
125 |
|
1993 |
134,549 |
795 |
133,754 |
18 |
107 |
|
1994 |
125,506 |
785 |
124,721 |
16 |
103 |
|
1995 |
117,231 |
1,167 |
116,064 |
15 |
147 |
|
1996 |
108,418 |
1,308 |
107,110 |
13 |
169 |
Source: Social Security
Organisation and Labour Department, Ministry of Human Resources.
Table 2.6:
Malaysia- Death Cases and Permanent Disablement Cases Settled,
By Age and Sex
|
Age Group |
Male |
Female |
|
|
1995 1997 1999 |
1995 1997 1999 |
|
Below
20 |
105 198 (1,004) 99 (719) |
5 23 (134) 14 (103) |
|
20-24 |
162 345 (1,922) 196 (1,301) |
11 28 (220) 14 (164) |
|
25-29 |
135 216 (1,601) 128 (1,209) |
8 13 (226) 18 (155) |
|
30-34 |
83 135 (1,371) 113 (1,095) |
6 9 (285)
12 (184) |
|
Total |
485 894 (5,898) 536
(4,324) |
30 73 (865) 58
(606) |
Note: Figures
in the red shows Permanent Disablement Cases.
Source: SOCSO
Even though, the total number of young workers
(subject matter) involved in the industrial accidents is not available, number
of reported death cases settled by the SOCSO as stated in Table 2.4 tells that
at least three young workers are facing death at work place in a day and more
than 20 young workers are permanently becoming disabled in a day due to
industrial accidents. Most of the injuries suffered by the workers are on their
upper limb (about 45%) and lower limb (about 25%), followed by head injury,
about 15.4% in the 90's. SOCSO record shows that most of the industrial
accidents happens because the workers stepped on or struck by objects (about
40%), followed by fall of persons (about 20%) and being caught in or between
objects, around 9.5%. The record on the industrial accidents reported since
1992 to 1996 also shows that an average of 2.5% (about 3,000 workers) a year
are exposed to harmful substances and an average of 3% (about 4,000 workers)
are injured due to exposure or contact with high temperature. While about 3.5%
workers are injured due to over-exertion or strenuous movements and another
3.2% injured due to exposure to or contact with the electricity.
The government has legislated Occupational Safety
and Health Act in 1993 besides setting up a National Institute of Occupational
Safety and Health to educate and monitor health and safety on the job are given
priority by the employers and employees.
Anyway, the statistics indicates that the arising number of registered
employers in Malaysia from 274,017 in 1995 to 385,916 in 1999 are not taking
enough effort to develop and implement comprehensive safety procedures and
programs at the workplace to reduce accidents, deaths and injuries.
An
unpublished data on women workers reveals that many women workers from rural
areas have to adapt to their new work, strict regime of work, shift work in the
urban area. Besides, long working hours and the repetitive and fast work has
caused pain in certain part of their body. Such as back pain, eye problems,
headache, miscarriage, breathing difficulties etc. are the sickness faced. But
it is always being not regard as occupational disease and no medical
protection. Furthermore, the education of the chemical and risk hazard is not
being given properly to workers.
According to the statistics department, number of
medical benefit recipients in 1999 is 209,821 persons compared to 196,668
persons in 1998. The Social Security Fund is increasing every year with
recorded amount of RM4, 463,988,313 in 1995 to RM7, 912,086,558 billion in 1999
as well as the investment quantum and the returns (SOCSO Annual Report, 1999).
It suggests that SOCSO has the capacity and capability to be more efficient in
reducing the number of industrial accidents in the country especially taking
into consideration that more young people are becoming the victim of growing
industrial hazardous.
The Workmen's
Compensation Act 1952 requires all employers engaging less than 5 employees
to insure such employees with a Workmen's Compensation insurance policy to
ensure the employees receive a reasonable compensation as a result of any
accident that may occur. Since SOCSO covers most of the workers, it is believed
Workmen's Compensation Act will eventually be phased out. Under the Act, it
provides compensation of about RM14, 400 or 45 months earnings to the
employees' dependants in the event of his/her death. For temporary disablement,
1/3rd of the workers monthly earnings is payable until his recovery
or for 5 years. In the case of permanent total disablement, compensation
payable is 60 months earnings for those 18 years of age and above while for
those 16 years of age and below 18 years, 84 months earnings or a maximum sum
of RM19, 200. Number of cases under Workmen's Compensation Act was 2,460 in
1997 and 3,148 cases in 1999. The figures mainly reflects industrial accident cases which involve foreign
workers.
The Employee's
Provident Fund (EPF) is also another National Social Security Organisation
that plays key role in providing retirement benefits for members. The EPF Act
1991 makes it compulsory for all employees and employers to contribute towards
the provident fund and that such contributions are payable to the employees in
full on reaching the age of 55 years. All employers and employees have to
contribute 12% and 10% of the employees' monthly wages respectively, to the
fund. Unfortunately, it does not compulsory covers employees under 16 years of
age and domestic servants. Only an employee who is 18 years of age or above can
nominate any persons to become his beneficiaries. The EPF savings (from Account
II) can be withdrawn for the purpose of purchasing a building or house. Recently,
the expectation of the scheme to provide full-scale retirement benefits and to
protect the members' fund is shattered when the government shows more interest
in protecting the employers rather than serving the interest of the workers.
Some
major issues of concern has been:
i)
Drastic
reduction of death and incapacitation benefits
ii)
Low
dividend and involved in rescue mission
iii)
Government
decision to reduce workers contributions to the EPF to help business
iv)
EPF
withdrawal for computers and health
i)
Drastic reduction of death and incapacitation benefits
With effect from 1st. July 2000, EPF has
reduced the death and incapacitation benefits from a minimum of RM 1,000 and
maximum RM 30,000 to a flat rate of RM 2,000.
An example is as below:
If Simon contributes EPF since at the age of 18 and
if death/incapacitation occurs at the age of 35 and he has a EPF credit of RM
10,000, we will entitled RM 4,716 on death or if incapacitation, he will
receive RM 13,899. But under the present entitlement, he will only receive RM 2,000.
The deduction and EPF reasoning that this decision
is made because only the rich benefit is not correct and clearly demonstrates
EPF’ uncaring and inconsiderate attitude.
Table 2.7:
Malaysia- Age become EPF member: 18 years.
Death/Incapacitation
at the age 35
|
EPF CREDIT |
Entitlement prior on death |
If Incapacitation (before) |
Present Entitlement |
|
RM 20,000 |
RM 9,434 |
RM 27, 778 |
RM 2,000 |
|
RM 10,000 |
RM 4,716 |
RM 13,889 |
RM 2,000 |
|
RM 5,000 |
RM 2,358 |
RM 6,944 |
RM 2,000 |
Table 2.8:
Malaysia-Age became EPF member: 18 years.
Death/Incapacitation at the age 25
|
EPF CREDIT |
Entitlement prior on death |
If Incapacitation (before) |
Present Entitlement |
|
RM 10,000 |
RM 15,217 |
RM 43,750 (max 30,000) |
RM 2,000 |
|
RM 5,000 |
RM 7,608 |
RM 21,875 |
RM 2,000 |
|
RM 3,000 |
RM 4,565 |
RM 13,125 |
RM 2,000
|
|
RM 2,000 |
RM 3,043 |
RM 8,750 |
RM 2,000 |
Source- MTUC
ii)
Low dividend and involved in rescue mission
Of late, rate of dividend declared by the EPF has
been low. Why is this so when during the economic recession in 1987, EPF still
managed to give an 8.5% dividend? The low dividend has been attributed to
losses incurred by EPF. EPF decision to buy Time Dotcom and in other rescue
missions such as Bakun, United Engineers (11% stake), scandalous PERWAJA (710
million) and KLIA (1 billion) has some of the answers for this low dividend.
EPF has forgotten that it is accountable to its members.
Table 2.9:
Malaysia- EPF Declining Dividend Rate, 1991-2000
|
Year |
1991 |
1992 |
1993 |
1994 |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
|
Dividend |
8.00 |
8.00 |
8.00 |
8.00 |
7.50 |
7.70 |
6.70 |
6.70 |
6.84 |
6.00 |
iii)
Government decision to reduce workers contributions to the EPF to help
business
Another recent decision to reduce workers
contribution from 11% to 9% was done purely in the interest to boast the
interest of the business classes. Though majority of the workers was unhappy
with this reduction, EPF maintained and only after much protest were workers
allowed to maintain at 11% contribution. Even for workers to maintain at their
current rate, they had to undergo difficulties like filling up the form 17A.
iv) EPF withdrawal for computers and health
Recent decision like allowing contributors to
withdraw money for health and computer though popular makes a mockery of our
social security scheme. Health and education is the responsibility of the
state.
EPF being the largest provident fund in the country
with membership 9.7 million and 13.8% rise in contributions to RM172, 159
million and a 14.5% increase in income as reported by the Finance Ministry in
it's 2000/1 Economic Report should play a more vital role in guaranteeing and
providing social security and social protection to million of young workers in
Malaysia who might not have any other savings besides their EPF money. Viewing
the workers intolerable working conditions, higher unemployment rate among
young workers and higher number of unskilled young workers in the labour market
and their job security being threatened, EPF has full accountability to protect
and invest in projects that would benefit the growing number of young workers
in Malaysia.
Health -healthy people
are the greatest asset of the nation and medical care must be provided to all
people who are in need. It further declared that any attempt by the government
to privatize medical services would be opposed.
Malaysia boasts of having very good health care
system since independence in 1957, it was the role model for many developing
countries. 1995 and 200 demographic indicators show life expectancy for male
are 69 and increased to 70.2, female 73.9 to 75.0 years. Infant mortality rate
for 1995 is 10.4 and reduced 70 7.9 per thousand populations while toddler
mortality rate has dropped from 0.8 to 0.6 per thousand populations.
Table 3.0:
Malaysia- Deaths by Specific Age Groups and Age Specific Mortality Rate, 1998
|
Age Group |
Estimated Population
('000) |
No. of Deaths |
Mortality Rate Per 1000
Population |
|
0 - 4 |
2,576.3 |
5,902 |
2.29 |
|
5 - 9 |
2,523.9 |
893 |
0.35 |
|
10 - 14 |
2,447.1 |
1,020 |
0.42 |
|
15 - 19 |
2,243.1 |
2,007 |
0.89 |
|
20 - 24 |
2,087.0 |
2,317 |
1.11 |
Corporations and privatization of the health system
is something, which just in our corridors. The process of privatization has
been taken place in stages and the future does not look bright. The recent
privatization of General Medical store to a subsidiary of Renong (Southern Task
Sdn. Bhd.) has increased prices of medicine at governmental hospital to 230%.
The price of morphine has increased ten times more.
The privatization of 5 supporting services (laundry,
cleaning, maintenance, waste disposal) to Mediserve, Radicare and Tongkah in
1997 has increased the cost of the services from RM 140 million in 1996 to RM
450 million in 1997. Taking National Heart Institution (IJN) as an example of a
corporatised hospital, several alarming findings are that there is separate
waiting list for paying and non-paying patients whereby paying patients get
faster treatment. Imagine if the whole health system is corporatised. We will
then have several classes.
Government statistics shows that average monthly
expenditure per household of 0-8 person on Medical Care and Health expenses has
increased from RM22 in 93/94 to RM31 in 98/99 while in urban area it has
increased to RM40 in 98/99. If the government
continues with it's privatization plan, it would make the poorer sectors of the
population including young workers whose wage is not much, to bear the
increasing medicine and health care costs. The government should make Health
Care System affordable and accessible to all Malaysians irrespective of
economic status, it shouldn't further burden the people who are already
struggling with the current high cost of living standard.
4.1 Social Problems and Young Workers
a)
HIV/AIDS
It is the most formidable epidemic in modern history
gaining momentum in Malaysia. Malaysian Aid Foundation (MAF) proclaims that
more than 80% of People Living with HIV/AIDS in Malaysia are below 39 years
old. The immediate impact of HIV/AIDS is a decline in the quality of the labour
force. It further said that a significant reduction in the number of skilled
workers, which includes professional knowledge workers, retards economic
development. It is a major concern of all that the age group of 20 - 39 years
old constitutes the largest proportion of those afflicted with HIV infection.
This age group is the nation’s main source of manpower and is supposed to be
the most productive and contributing towards the economic development of the
country. As women become a more significant part of the HIV/AIDS statistics,
the infant mortality rate too has increased, thus multiplying the effect on the
next generation of workers. If the rate and trend of HIV infection continues,
it will critically affect our nation’s main source of manpower, which in the
long run will affect the economic development of the country. Our aim of having
a healthy and caring population would be marred by a high prevalence of this
dreaded disease. Some of the impact of HIV/AIDS epidemic to our economic is
described as follows:
Ø
HIV/AIDS reduces our national potential.
For a person living with
HIV/AIDS, the cost of treatment can be some RM2000 a month for life, on top of
rent, food, transport and education. Barely affordable! As families lose
breadwinners, women and children are forced to work. The potential for young
people to advance their education and contribute to nation's development is
curtailed. No multinational manufacturers would choose to invest in a country
with growing number of HIV/AIDS problem. The depletion of manpower and the ugly
image of HIV infection in our country will scare off potential foreign
investors and also affect the national tourism industry. The burden of caring
for the sick will also increase and this will cause a severe strain on our
economy.
Ø
The consumer Market is reduced.
HIV/AIDS people are also
consumers. More and more funds are used for treatment, less is available to
spend on essentials or luxuries. In Malaysia, survival time of a person with
HIV/AIDS is shorter due to the lack of access to life-extending drugs. More
than 30,000 Malaysians are already on this 'endangered consumer' list.
As at December 2000, Malaysia is
reported to have 38,044 People Living with HIV/AIDS since the first reported case in 1986. 12
people are reported to be testing HIV-positive every day. 82% of total
HIV-positive cases are people between 20 and 39 years of age. 4, 649 people in
Malaysia have developed AIDS while 3, 538 have dies. The majority of the cases
involve males aged 19-39 but the number of females is in increasing.
The following Table 3.1 shows that the unemployed
persons are the highest with the HIV infection. It suggests perhaps a longer
duration of unemployment and income insecurity has led to frustration,
depression and inferiority among the unemployed that lead them to use drug
which finally causes HIV transmission. These cases of HIV infection which were
detected were mostly due to intravenous drug use (IDU) which constitutes 78.06%
of the total transmission risk factors.
Table 3.1:
Malaysia- HIV Infection, AIDS Cases and Deaths Reported in Malaysia
(1986-April
2001)
|
Risk Factor |
Classification |
CUMULATIVE TOTAL |
|||
|
HIV Infection |
AIDS Cases |
||||
|
Numbers |
% |
Numbers |
% |
||
|
Gender |
Males |
37,891 |
94.6 |
4750 |
93.1 |
|
Females |
2,158 |
5.4 |
353 |
6.9 |
|
|
Age Groups |
< 2 years |
76 |
0.2 |
12 |
0.2 |
|
2 - 12 |
209 |
0.5 |
76 |
1.5 |
|