Malaysian labor laws strain regional ties

Illegal workers in Malaysia now face caning, fines and imprisonment under the new laws

JAKARTA, Indonesia (CNN) -- The lives of hundreds of thousands of Indonesia's villagers have been improved with money sent from relatives working in Malaysia.

Malaysia's modern skyscrapers rose up on the labor of foreign workers, the majority of whom came from Indonesia. Both countries mutually benefited and it further sealed close relations -- until now.

Following a slowdown in Malaysia's economy and two highly-publicized incidents of violence by Indonesian workers earlier this year, Malaysia introduced a new immigration law which came into effect on August 1.

The law seeks harsher punishments -- caning, fines and imprisonment -- for migrants working illegally there.

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As a result, hundreds of thousands of illegal Indonesian workers started fleeing Malaysia earlier this month to avoid punishment.

The government's handling of the issue drew criticism from many quarters. But in recent days, some of the harshest words have been slung at Malaysian Prime Minister Dr Mahathir Mohamad, straining ties further.

Last week, Amien Rais, speaker of Indonesia's highest law-making body, the People's Consultative Assembly (MPR), warned Mahathir "he was playing with fire" by caning illegal Indonesian workers, calling the punishiment "inhumane and insulting."

Rais' remarks drew a sharp rebuke from Malaysia's Foreign Minister Syed Hamid Albar.

Malaysia recently called for its nationals to avoid traveling to Indonesia because of public anger over Kuala Lumpur's treatment of illegal workers.

Warning

"That warning is good. Let Malaysia be aware that for every action there is reaction," Rais said.

These harsh words reveal another dimension -- one that goes beyond the plight of the poor Indonesian worker.

A former official from the Indonesian Foreign Affairs Department told CNN the anti-Mahathir words had mostly come from public figures who are supporters of Malaysia's jailed former deputy prime minister Anwar Ibrahim.

"People like Amien Rais and others, who had spoken against Dr Mahathir, if you look closely, have links to the Indonesian Association of Muslim Intellectuals (ICMI) which was once close to Anwar," said the former official.

Rais was a member of ICMI.

"The government itself has not really criticized Malaysia and human rights activists working to alleviate the sufferings of the returning migrants have not said that much either," the former official added.

The ex-official also said the war of words was an attempt to create trouble for President Megawati as well as Dr Mahathir.

Both Indonesian and Malaysian officials in Jakarta downplayed the diatribes, saying relations between the two countries were still good.

"People are entitled to their views. That is a democratic system. All these recent incidents are just a distraction. The relationship between the two governments is good and there is very good cooperation to resolve the matter," Marty Natalegawa, Indonesian Foreign Affairs Department spokesman, told CNN.

Spirit of friendship

Malaysian Ambassador to Jakarta, Rastam Mohd Isa, also dismissed suggestions that relations between the two countries were at a low point.

"The relationship between the two governments are okay. This can be worked out in the spirit of friendship and cooperation," Rastam told CNN.

Indonesians are not the only foreign workers in Malaysia but they are by far the largest -- there are currently 600,000 Indonesians working legally and another 480,000 illegally there, according to Natalegawa..

From March to July, more than 250,000 illegal workers have returned to Indonesia.

The exodus also led to thousands of returning migrants to be stuck at squalid camps in Nunukan, East Kalimatan while awaiting transport back to their villages.

Scores have died in those camps since the end of July.