Kuching: DAPSY Sarawak has called on the Sarawak Government to explain how the Foreign Workers Transformation Approach (FWTA) will affect the cost of living, warning that the additional costs imposed on businesses are likely to be passed on to consumers.
DAPSY Sarawak Treasurer Lesley Chong said the state government has consistently promoted FWTA as a system that improves efficiency and streamlines the management of foreign workers, but has yet to address concerns over its wider economic consequences.
She said the government has not explained how the fees and administrative charges introduced under FWTA would affect businesses, market prices, and ultimately household spending.
“The government may argue that these charges are borne by employers, but businesses are not charitable organisations.
“When operating costs increase, those expenses will inevitably be reflected in the prices of goods and services, leaving ordinary Sarawakians to bear the burden,” she said in a statement.
Chong noted that many sectors in Sarawak, including construction, manufacturing, plantations, food and beverage, and services, rely heavily on foreign workers. As the cost of recruiting and renewing foreign worker permits rises, businesses are expected to incorporate the additional expenses into their operating costs.
She said higher construction costs could drive up housing prices, while rising operating costs in the food and beverage industry could push up food prices. Similar increases, she added, would eventually affect manufactured products and services.
Chong argued that FWTA is no longer merely an issue of foreign worker management but a broader public policy matter with implications for Sarawak’s economic competitiveness and the cost of living.
She questioned why the government has yet to disclose the basis for the FWTA fee structure or release any assessment on its impact on business costs, inflation, and consumer prices.
Calling for greater transparency, Chong urged the Sarawak Government to publish a comprehensive impact assessment of FWTA’s effects on operating costs, market prices, and household expenses.
She said the public deserves access to relevant data to determine whether the policy genuinely strengthens Sarawak’s economy or increases costs throughout the supply chain, which consumers ultimately bear.
