NRI Dunia
Think Outside The Box

Indian origin Mustafa Centre to send back foreign workers due to Corona effect

Singapore’s largest Indian origin hypermarket, Mustafa Centre, on Monday said it will send home its foreign workers, mostly Indian nationals, whose work passes have expired, as its business has been hard hit by the Covid-19 pandemic.

The company will also stop paying employees who have not been called to work a ‘sustenance allowance’ – believed to be SGD300 per month – and it urged this group of staff to take on a second job to earn an income, according to media reports on Monday.

In a letter addressed to all employees of the Mustafa group and its related companies, managing director and founder Mustaq Ahmad said the company was unable to renew the work passes of its foreign workers and would pay for their return ticket home.

It will give these foreign workers a month’s basic salary as a token, said Mustaq in the letter dated August 27 which was circulating on social media on Sunday.

“We regret to have to resort to these decisions but hope that businesses will come back to normal as soon as possible,” The Straits Times quoted Mustaq as saying in the letter.

Mustaq said the company would stop paying the sustenance allowance – given to staff since June – from October 1 as it needs to reduce payroll costs.

The business has been badly affected by the coronavirus, he said, noting that not all employees can return to work due to reduced opening hours and strict safe distancing measures at the popular shopping mall.

“We do not expect our business to return to the pre-Covid days as our (Singapore’s) international borders are all closed. It will take longer than expected,” said Mustaq.

A manager at the store, who did not want to be identified, said business had plummeted to just 20 percent of what it used to be before Covid-19.

Tourists and foreign workers used to be the store’s main source of revenue, but they have “all but disappeared”, said the manager.

Mustaq, who noted that some staff members had begun finding jobs elsewhere, said the company would waive notice periods for resignations and give those who resign a month’s basic salary as a token of appreciation.