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Malaysia has not banned the recruitment of Indian workers as reported by international news agencies, Malaysian Minister S. Samy Vellu clarified here Tuesday. Vellu, the cabinet minister of works who is attending the sixth Pravasi Bharatiya Divas, told reporters that there was no truth in the reports emanating from Kuala Lumpur. However, ambiguity persisted on the issue with reports that the Indian government has sought a clarification on the matter from Malaysian authorities.
Vellu told reporters at the Vigyan Bhavan conference complex: "I just spoke to my prime minister, minister for human resources and the secretary general of home affairs. There is no truth in the reports."
"There is status quo," he added. "Reuters report (about the ban) does not have the approval of the Malaysian government."
Moments later, Indian Minister for Overseas Indian Affairs Vayalar Ravi said he believed Vellu's version of what was threatening to become a new sour point in India-Malaysia relations.
"We will go by what the minister has said. Since he has said there is no truth in the report, let us believe him," Ravi told reporters.
Vellu's hurried clarification came hours after international wire services reported that Malaysia, hit by ethnic Indian protests, had banned the recruitment of all workers, professionals included, from India and Bangladesh, two countries which account for a large group of expatriate workers.
The report had cast a shadow over the Pravasi Divas, India's annual conclave to engage with its 25 million diaspora in over 130 countries. Malaysia has the largest delegation of 130 members, led by Vellu, a frequent visitor to India.
News reports from Kuala Lumpur earlier quoted an unnamed home ministry official as saying that the cabinet decided to suspend the recruitment of workers from India and Bangladesh about two weeks ago.
According to the reports, the ban would have taken effect from Dec 31, 2007.
The official went on to say that existing workers from the two countries would not have their work permits renewed and that the ban applied to all categories, including professionals. The reports also said that other ministry officials too confirmed the ban but did not give a reason.
It wasn't clear if the reported ban - denied in New Delhi by minister Vellu and not reported by Malaysian online newspapers until the evening - was linked to recent street protests by Malaysians of Tamil origin alleging discrimination by the Malay-dominated government.
The reports also came as Indian Defence Minister A.K. Antony was wrapping up a visit to Malaysia during which the two countries decided to boost their military ties, notwithstanding the recent friction over the protests in Malaysia and the condemnation by Indian politicians of the crackdown on the protestors.
Indians make up about eight percent of the two million registered foreign workers in Malaysia. They are mainly employed in the construction, IT and financial services industries in the Southeast Asian country.
Around seven percent of Malaysia's 26 million people are ethnic Indians, whose forefathers moved to that country as labourers during British colonial rule.
BBC earlier quoted A. Vaithilingam, president of a Malaysian inter-faith group, as saying that the reported government decision came without dialogue and was "unprecedented".
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