(AFP) - The government is to cut the permit period for foreign workers to three years from six or seven years due to an economic slowdown, a report said today.

Home Ministry Parliamentary Secretary Abu Zahar Isnin said those in manufacturing, construction and services were previously allowed to work for six years while those in estates were given work permits for seven years.

But now after the end of the three-year period, the foreign workers would be sent home, he was quoted as saying by the Sunday Star newspaper.

"We are now reducing the time limit to three years. With the world economic climate showing signs of a slowdown many local workers are out of jobs," Abu Zahar said.

The government wants job priority to be given to locals, he said, adding the new ruling would take effect immediately on all economic sectors except domestic helpers.

Downward revise

Malaysia has revised downwards its 2001 gross domestic product growth forecast for a second time, to 1.0-2.0 percent, because of the "greater-than-expected" slowdown in the world economy.

Growth in the manufacturing sector, the key pillar of the economy, is expected to decelerate to 0.2 percent in 2001 from 21 percent in 2000 due to the depressed global market for electronic goods that account for about half of Malaysia's manufactured goods.

There are 697,219 registered foreign workers in the country, including 517,776 from Indonesia, 129,000 from Bangladesh, 30,500 from the Philippines, 3,280 from Pakistan and 2,888 from Thailand.