Sarawak Timber Association: Defer FWTA charges until meaningful talks with stakeholders held

KUCHING (Jan 15): The Sarawak Timber Association (STA) is calling on the Sarawak government to defer the implementation of the Foreign Workers Transformation Approach (FWTA) charges until ‘meaningful consultations’ with all stakeholders are conducted, and their concerns fully addressed.

In calling for action to alleviate the burden on industry players, CEO Annie Ting said STA was taken aback by the implementation of the state government-owned system, and hoped for Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg to intervene.

“The system takes effect today (Jan 15), coinciding with the first briefing session organised by the Immigration and Labour Management Unit (Ilmu) in Sibu.

“This session, along with the subsequent briefing sessions scheduled for Bintulu and Kuching on Jan 17 and Jan 22, respectively, only marks the beginning of the statewide consultation with industrial stakeholders,” she said in a statement today.

Ting said while these sessions are intended to provide a platform for learning about the new FWTA system and offering feedback, implementing the system concurrently has not only left stakeholders with no viable options but also provided limited opportunity to prepare adequately or address critical concerns and potential shortcomings.

“The introduction of the RM1,854 per worker charges has a drastic impact on the business environment. This sudden imposition, coupled with inadequate prior notice, consultation, and transition period, has sparked widespread concerns across various industries in Sarawak.”

She said this additional cost, applicable only in Sarawak, poses a significant threat to the industry’s competitiveness in the national, regional and international markets, particularly as industries are already burdened by charges imposed by the federal government.

She stressed that the RM1,854 collection per worker could hinder industry’s ability to remain sustainable in an increasingly challenging economic environment.

“For the industry to remain sustainable, there is an urgent need for a regulatory environment that supports long-term growth and fosters a conducive atmosphere for development.

“In light of this, STA appeals to the Premier to intervene and urges the Sarawak government to defer the implementation of the FWTA charges until meaningful consultations with stakeholders, including STA, are conducted and their concerns are fully addressed.”

Deputy Minister in the Premier’s Department (Labour, Immigration, and Project Monitoring) Datuk Gerawat Gala on Tuesday told The Borneo Post that a series of engagements had been held with industry representatives leading up to the decision to implement the FWTA system.

He explained that the system is more efficient in terms of the speed of turnaround time for processing work permit applications, and is very transparent.

“It enables immediate access to non-resident workers’ data, which can be checked online by enforcement agencies. FWTA will also centralise data for all non-resident workers, which is crucial for manpower planning in Sarawak,” he said.

Gerawat added the new system aims to streamline the work permit application process for faster approval and better transparency and effective enforcement.

The FWTA is an online digital application designed for processing work permit applications of non-resident workers.

The Borneo Post had previously reported several proposed charges that will take effect with the implementation of FWTA.

These include RM950 per person for Approval in Principle, RM335 per person for the Labour Licence, and RM215 per person for the Visa with Reference.

Additionally, there will be a charge of RM30 for each registration with the Sarawak Foreigners Health Information System (Safhis).

This system serves as a centralised platform for managing foreign workers’ medical data in compliance with the Sarawak Health Department.

The RM30 fee covers the registration process, including arranging appointments with panel doctors registered under the system.

Once the new system is implemented, each worker will also receive a Foreign Worker Identity Card, which costs RM324 per person.

All in all, the total additional cost per worker amounts to RM1,854.