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India, Malaysia to sign MoU on labour soon

P. S. Suryanarayana

SINGAPORE: India and Malaysia will sign a labour pact on the recruitment, placement and welfare of blue-collar workers in each other’s domain.

The ‘Memorandum of Understanding on Employment of Workers’ is expected to be signed by Overseas Indian Affairs Minister Vayalar Ravi and Malaysia’s Human Resources Minister S. Subramanian in New Delhi on January 3.

Dr. Subramanian told The Hindu over telephone that the new “official framework” was fashioned to “set out the basis” for “management of the movement of labour” in either direction. In prime focus would be the recruitment and entry of Indian workers into Malaysia and “solutions of issues which might arise” concerning the terms and conditions of their employment. Estimates of Indian workers in Malaysia at this stage varied from 150,000 to 200,000, he indicated, without mentioning any cap on their recruitment as such.

Malaysians now employed in India, essentially by Malaysian firms, were not in the blue-collar category. Bilateral issues relating to professionals, especially in the IT sector, might be discussed now. However, an exclusive accord on IT professionals was “not [on the cards] at this point,” Dr. Subramanian said. The labour MoU was “languishing for a long time” and the delay could be traced to “various reasons,” he said.

Under the pact, a Joint Working Group, consisting of “representatives from the two governments,” would be set up to “look into details, monitor [the implementation] and provide solutions, as time goes by.” So, baseline wages and “welfare of the workers can [now] be taken care of in a smooth manner. Abuses by recruiting agents and other parties could be managed properly.”

The two governments and their high commissioners would also gain “more bite” to implement the accord and “take action on errant contractors,” Dr. Subramanian said. When contacted, India’s High Commissioner to Malaysia, Ashok K. Kantha, said the accord, which creates “a much-needed institutional arrangement,” took shape during Mr. Ravi’s visit to Kuala Lumpur in October.

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