Foreign workers housed in gated communities irks local residents

KUALA LUMPUR (March 27): The land-scarce island of Penang has seen the issue of Multinational Corporations that have been forced to house their foreign workers within exclusive gated and guarded communities, raising the ire of locals in the neighbourhoods.

The Star reports that the MNCs turned the exclusive homes into hostels with up to 30 foreign workers each, due to the shortage of suitable quarters.

With steep rentals of RM2,000 for unfurnished units, the MNC’s would house up to 30 workers in each house, as they are required to provide quality housing for workers, as they are bound by high standards of operating ethics like the Responsible Business Alliance (RBA) — which is a global coalition of industries committed to upholding high standards of corporate social responsibility (CSR).

Thirty workers crammed into a triple storey home, living next to upper-middle-class neighbours with luxury cars makes for a sight.

The publication reports that Sunway Cassia Residents Association chairman Ibrahim Ramli said that the height of the problem happened when 20 out of the 170 houses in his neighbourhood were converted into hostels.

The gated and guarded community of Batu Maung is just 3 km away from the Bayan Lepas industrial area, with the problem starting in 2016.

“At one time there were over 600 foreign workers living here. We have a beautiful nature park and exclusive picnic area. When they were celebrating some kind of festival they would take over our park and hold loud concerts and parties,” he said.

He recounted a fight between two drunken male workers which spilled onto the streets, requiring police intervention.

In the mornings, the workers would be bussed to their factories. 

“If one bus holds around 30 workers, imagine how many buses would come for 600? The buses arrive before the sun comes up and the noise of the buses and hundreds of workers walking out is horrible,” he said.

Property devaluation had also been ascribed to the presence of the foreign workers. Once valued at RM1.2 million, homeowners had begun selling for RM800,000.

Upon lodging a report with Penang Island City Council, the residents of Sunway Cassia had seen action taken against eight house owners under Section 28(2)(a) of the Town and Country Planning Act 1976 for allowing their properties to be converted to worker hostels without approval.

Since the intervention of the government, the number of hostels in the area had dropped to two.

Penang Mayor Datuk Yew Tung Seang said companies that while are allowed to rent homes for their workers, it must follow the law, and avoid becoming a nuisance to neighbours.

Planning permission is required prior to housing a large number of workers in one unit.

State Housing, Town and Country Planning, and Local Government Committee chairman Jagdeep Singh Deo reportedly said that Penang had also approved the construction of two foreign worker residential complexes in Batu Maung and Gertak Sanggul capable of accommodating 12,000 workers.