KUCHING: The Sarawak Timber Association (STA) has expressed deep concern over the abrupt implementation of the Foreign Workers Transformation Approach (FWTA) system, which is owned by the Sarawak Government.

The new system, which came into effect on January 15, 2025, coincided with the inaugural briefing session conducted by the Immigration and Labour Management Unit (ILMU) in Sibu.

The briefing session in Sibu is just the beginning of a series of State-wide consultations with industrial stakeholders, with additional sessions planned for Bintulu and Kuching on January 17 and 22 respectively.

These sessions aim to educate stakeholders on the new system while gathering feedback.

However, STA and other industry leaders argue that the simultaneous implementation of the FWTA system has caught them off guard, leaving little room for stakeholders to adequately prepare or address potential challenges and deficiencies within the system.

“The introduction of this system without sufficient notice or consultation has left the industry scrambling to adapt,” said STA Chief Executive Officer, Annie Ting, in a statement released on Wednesday.

“Our members are already grappling with the high costs imposed by the federal government, and the additional RM1,854.00 per worker charge will further strain businesses, many of which are struggling to remain competitive,” she added.

According to STA, this charge is unique to Sarawak, as it is not enforced in either Sabah or Peninsular Malaysia, thereby placing local industries at a distinct disadvantage.

Ting warned that this disparity could weaken Sarawak’s competitiveness in national, regional, and global markets.

“This move threatens the sustainability of Sarawak’s industries, particularly in an increasingly challenging economic environment.

“At a time when industries are already burdened with rising operational costs, adding this charge could push some businesses beyond the tipping point,” Ting emphasised.

Ting further explained that the RM1,854 charge per worker, introduced with little prior notice, would severely impact businesses' ability to plan and manage their finances.

“The lack of a clear transition period makes it nearly impossible for companies to budget accordingly,” she added. “We are left with no viable options to cushion the sudden financial blow this has caused,” she said.

STA has called on the Sarawak Government to take immediate action by delaying the enforcement of the FWTA charges until comprehensive consultations can take place.

According to the association, a conducive regulatory environment is essential for ensuring the long-term growth and sustainability of Sarawak’s industries, especially during these economically trying times.

“We urge the Sarawak government to engage in meaningful discussions with stakeholders, including STA, to find a solution that protects both the industries and the livelihoods of thousands of workers,” said Ting.

In an appeal to the Sarawak Premier, STA is urging the government to suspend the implementation of the FWTA system until all concerns are adequately addressed and the relevant stakeholders have been thoroughly consulted.

STA believes that only through open dialogue and a thoughtful approach can Sarawak’s industries maintain their competitiveness and remain resilient in the face of increasing economic challenges.

"We hope the Sarawak government will prioritise the long-term sustainability of our industries and act swiftly to alleviate the concerns of local businesses," Ting concluded. -UKASnews