PETALING JAYA, MALAYSIA - The new requirement for Indonesians to undergo an induction course in their country before being able to work here will only increase red tape and add to the high cost of engaging their services.

The Malaysian Employers Federation (MEF) said the ruling, which requires employers to pay an induction fee of RM120 for each worker, would negatively impact the Government's efforts to simplify the procedure for bringing in foreign workers.

In a statement, the MEF said it strongly objected to the ruling, which was announced by Human Resources Minister Datuk Dr S. Subramaniam recently.

It was reported that of the RM120 induction fee, RM32 would be used for documentation costs while the remainder would be for the agency in Indonesia to conduct the course, aimed at familiarising workers with Malaysian culture.

'The cost now of employing an Indonesian worker (including levy, visa, travel, food, lodging, processing fee and other expenses) can vary from RM5,000 to RM6,000,' MEF executive director Shamsuddin Bardan said in the statement.

'Foreign workers reportedly pay up to RM7,000 each to middlemen and agents before they are sent to Malaysia.'

He added that as of end-2007, there were 1.148 million registered Indonesian workers, and that the new ruling would add RM137.76mil more to the cost of recruitment.

As such, he said the efforts by Pemudah, the Government's task force for facilitating businesses, to simplify procedures for bringing in foreign workers would be negatively impacted.