FairPrice to stop housing allowance for 1,000 Malaysian staff stuck here

Singapore

FAIRPRICE Group, which has been providing for about 1,000 of its Malaysian employees stuck here because of Malaysia's movement control order (MCO), has told them it can no longer sustain the support and will end it on July 9, BT understands.

When Malaysia announced the MCO in March, restricting travel across the Causeway, FairPrice had put together a temporary package - of free accommodation, a daily allowance and free parking, among other benefits - for affected Malaysian employees.

Of the 1,300 staff that the package was offered to, some 1,000 took it up.

FairPrice has extended the package as Malaysia's borders have stayed closed, currently until Aug 31, in the "recovery phase" of the MCO.

But in a circular to the Malaysian employees on June 10, FairPrice said that out of "financial sustainability and prudence and consideration for (its) other Malaysian employees already residing in Singapore", it had, over time, stepped down the package to provide a housing allowance or hotel accommodation only. And having reviewed the package to find "a sustainable way moving forward", the package will have to cease on July 9.

FairPrice also said that even as Singapore is gradually reopening the economy, travel restrictions, such as requiring approval from the Ministry of Manpower (MOM) to enter Singapore, will likely remain. Hence, "daily commuting Malaysian employees will need to consider relocating to Singapore for health, security and stability reasons".

According to the letter, employees can take up to three months' leave to return to Malaysia to discuss relocation plans with their families. However, they will need to sign an acknowledgement of understanding that they are leaving Singapore with the risk of being denied entry back to Singapore.

They will need to inform FairPrice of their decision within one month of returning to Malaysia. If employees decide not to relocate to Singapore, they can submit their resignation.

But if they decide to relocate, they can get a housing agent to help them find accommodation in Singapore, with agent fees covered by FairPrice, and/or get a loan from the company, although it will be deducted from their salaries later. FairPrice will also help them get preferential rates should they choose to stay on at their current accommodation.

In response to BT, FairPrice said that as affected staff have been given "considerable time" to adjust to the changes, it worked with the union to develop a "fair and sustainable" solution, while taking into account the "volatility of the current evolving Covid-19 situation".

When the package ceases on July 9, FairPrice would have extended the package for almost four months. Also, like other Malaysian employees residing in Singapore to work here, "employees who are currently on the temporary package will also need to factor in similar expenses".

FairPrice said: "As a responsible employer, our employees' welfare and well-being are of utmost importance and our practices are aligned and in tandem with economic and market conditions. In this instance, the special package we provide exceeds industry practices in view of the extraordinary circumstances caused by the current Covid-19 situation."

It added that it has not "actively terminated" any staff affected by the MCO.

With 200,000 to 250,000 Malaysians commuting to Singapore for work daily, according to Bernama news agency, the MCO in March led companies here to scramble to house workers, but also sparked concerns over the costs of providing for those workers.

MOM offered employers temporary housing support of S$50 per affected worker per night, but that ended two weeks later on March 31.