19 April 2016 Dr Suzyrman Sibly Deputy Director Pusat Kajian Kelestarian Global Centre for Global Sustainability Studies Universiti Sains Malaysia

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1 Foreign Workers in Malaysia 19 April 2016 Dr Suzyrman Sibly Deputy Director Pusat Kajian Kelestarian Global Centre for Global Sustainability Studies Universiti Sains Malaysia

2 Pekerja Asing di Malaysia Sektor Perladangan dan Pertanian - Sektor utama Pertengahan 1980an an - Sektor Perindustrian berkembang pesat Perpindahan tenaga buruh domestik dari Sektor Perladangan dan Pertanian ke Sektor Perindustrian

3 Pekerja Asing di Malaysia Kemasukan pekerja asing membantu sektor perladangan Upah murah Meningkatkan comparative advantage Membantu mengekang inflasi Membantu mengekang kenaikan upah

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5 Top 5 Countries to Which Remittances are Sent from Malaysia Bangladesh Indonesia Nepal India Philippines Source: Astro Awani (2013, November 11). Bangladeshi Workers in Malaysia Send the Money Home. Astro Awani. Retrieved from

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8 Negara Asal Indonesia 603,453 1,211, , ,965 Bangladesh 158,149 55, , ,437 Thailand 2,335 5,751 17,209 13,547 Filipina 14,651 21,735 35,338 65,096 Pakistan 3,101 13,297 28,922 72,931 Myanmar 3,444 88, , ,652 Nepal , , ,596 India 18, ,947 95, ,751 Lain-lain 2,363 91, ,086 77,060 Jumlah 807,096 1,815,238 1,817,871 2,135,035 Sumber: Unit Perancang Ekonomi (2016)

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11 Reasons for Recruiting Foreign Workers (Source: Malaysian Employers Federation, 2014)

12 Criteria Adopted in Evaluating Potential Foreign Workers (Source: Malaysian Employers Federation, 2014)

13 Factors that influence the employment of foreign labour Availability of foreign workforce Education Level Working Hours Wages Working Environment (Source: Built Environment Journal, 2012)

14 How Foreign Workers Come to Malaysia Entry of foreign workers via two ways: Legal entry through legitimate foreign workers agencies registered under the Malaysian Immigration Department Illegal way that is through non-registered agencies (Source: Global Journal of Human-Social Science: (F) Political Science, 2014)

15 Application Process Flow for Foreign Workers (Source: Malaysian Employers Federation, 2014)

16 Model Ekonomi Baharu

17 Sustainability Model Economy Social Sustainable Development Environment

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20 Tun Abdullah Ahmad Badawi: We want to decrease the intake of foreign workers but if we were to stop (their entry) altogether at this point, it may jeopardise the industry that highly depends on them (Utusan Malaysia, May 3, 2001; 4)

21 Tun Dr. Mahathir Mohamad stated during a meeting with former Indonesian Prime Minister Megawati Sukarno in year 2002 in Bali, that: most immigrants or foreign workers who live in Malaysia are unemployed and are involved in criminal activities. This situation has raised a concern among the locals of Malaysia

22 Problems of Employing Foreign Labours Productivity Communication Attitudes Safety Precautions Accommodations (Source: Built Environment Journal, 2012)

23 Issues and Challenges (Source: Malaysian Employers Federation, 2014)

24 (Source: The World Bank, East Asia Pacific Region, Human Development Dept: Social Protection & Labor Unit, 2013)

25 Foreign Workers in Malaysia Loose policy on foreign workers Disturbs social stability ie. Disease, Conflict & Crime - Public safety and security and education Abusive practises in human rights by private recruitment agencies Remittance outflow affects balance of payments - pressure on the currency Political issue

26 Migrant Workers: Malaysia s Invisible Workforce In an interview with Malaysian Digest, Malaysian Employers Federation (MEF) executive director Datuk Shamsuddin Bardan (pic) said there are currently 2.8 to 2.9 million migrant workers in Malaysia. Foreign labour, especially the blue-collar workers, contributes quite significantly to the national economy as they contribute about 10%- 11% to national economy. Source: The Wei Soon. (2015, February 10). Migrant Workers: Malaysia s Invisible Workforce. Malaysian Digest. Retrieved from workers-malaysia-s-invisible%20workforce.html

27 Lessons Learnt Foreign labor - temporary solution Capital intensive / Labour - saving technologies with higher productivity Move away from low value added unskilled labour intensive manufacturing to high value added skill intensive operations high income with high productivity foreign labour is here to stay?

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