KUCHING: The Sarawak Timber Association (STA) urged the state government to justify the high fees imposed under the newly introduced Foreign Workers Transformation Approach (FWTA) system, and clarify the beneficiaries of these charges.
STA chairman Datuk Henry Lau Lee Kong said that the system, which came into effect on January 15, requires companies to pay RM1,854 per worker, a financial strain that could total more than RM100 million for Sarawak’s 100,000 foreign workers.
“In addition, when coupled with the minimum wage increase to RM1,700 now in effect and the upcoming mandatory Employees Provident Fund contributions for foreign workers, these costs are placing significant strain on businesses.
“This could severely undermine our competitiveness, particularly in the export market, where cost efficiency is paramount,” he said in his speech during the STA Annual General Meeting 2025 at Wisma STA today.
Beyond foreign worker fees, Lau also raised concerns about the government’s consideration of a fixed minimum salary for entry-level graduates.
“Graduates are not all the same; they have different educational backgrounds, skill levels and needs, depending on the industry.
“Wages vary across industries, and the demand for specific skills can differ too.
“A one-size-fits-all salary might not suit the different needs of the job market and could lead to mismatches between what graduates are qualified for and what employers need.
“Therefore, instead of government intervention, graduate salaries should be determined by market forces, allowing demand and supply, industry needs and job functions to naturally regulate wages,” he explained.
He said STA will continue to engage with Sarawak agencies and industry stakeholders to find balanced solutions that align with the government’s goals while ensuring the sustainability and growth of their businesses.
“We hope the government will endorse STA’s role in advocating for the betterment of the timber industry in Sarawak,” said Lau.
