IMPACT OF THE FOREIGN WORKERS INFLUX IN MALAYSIA

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1 IMPACT OF THE FOREIGN WORKERS INFLUX IN MALAYSIA 1

2 Contents 1.0 Introduction 1.1 Current Problems 1.2 Managing the issues 2.0 Problem 2.1 Competition with local labour 2.2 Spread of dangerous diseases 2.3 Increment in criminal activities or social problem 2.4 The Language Problem Issue 3.0 Solution 3.1 Giving priority to local people work in various sectors 3.2 law enforcement by the government 3.3 Eliminate illegal migration 3.4 Provide them training basic language Pages Evaluation Conclusion 16 2

3 1.0 Introduction Recently, the increasing number of foreign workers in Malaysia is indeed a concern to many parties especially in various industries in particular. Malaysia is using the foreign labour as an asset of national development, particularly in the construction industry and production. According to the (Economic Report, 2010/2011) by the Finance Ministry, there were 1.8 million registered foreign workers in Malaysia, 38.2 percent were financial in the manufacturing sector, 16 percent in the construction and 14.2 percent in the plantation values. In this regard, local labour depletion problems experienced by Malaysia resulted in the country had to use foreign labour to fulfil the industries of the country. Malaysia is one of the country's many Asian countries receiving foreign skilled labour, semi-skilled and unskilled workers from abroad, these workers are mostly from Indonesia, Bangladesh and so on, in various industries, whether local or international. We can see which statistic shows that the use of foreign labour in the construction sector, which in Indonesia in Malaysia from 2006 to 2010, 2008 (183,961), 2009 (172,329) 2010 (151333). Although it could have a positive impact on the development of the country it also able to threaten social life of society. The studied about the influx foreign workers made to look how the use of foreign labour gives a big impact on political, social and economic. 3

4 1.1 Current Problem However, the use of foreign labour raises many negative impacts than positive. Therefore, it can be seen in terms of foreign labour abuse in politics. In the administration of the country, there are a few people who have a selfish attitude which in abusing foreign labour for political gain is simply like foreign labour and used them as a tool in election polls recently and given valid citizenship to them. In addition, creating a social outbreak exist harmful threat such as Mycobacterium tuberculosis, and cholera. This disease a result of the construction of squatter construction site they cause indirectly lead to the disease. Next, the foreign labour dependence also cause competition among local workers in the same job as the use of foreign labour is much cheaper compared to local labour employer. In addition, the communication problem is also one of the impacts of the use of foreign labour. Usually, language problems exist when foreign labour cannot be master English as communication between employers. This situation cause misunderstanding because the information provided by the employer to a foreign labour in contrast to what directed this existence difficulties in employment. Economic problems may also be caused the country s dependent on foreign labour since there are differences between money that goes in and out. When the country is dependent on foreign labour the amount of currency going out is more than the amount of currency than goes in. The country will have a problem decline value points from time to time. Finally, the number of criminal cases is also increasing the. Electronic media, has shown a lot of crime going on of late are from foreign countries, especially from foreigners who are employed but have other intentions of threatening our country security. 4

5 1.2 Managing the issues Influx of foreign workers in the country is very alarming to various parties, especially those women who are constantly exposed to danger. This matter needs to be addressed immediately to the local communities so that local people can live a comfortable life. In addressing this issue, various parties should unite to provide comfort to the community, especially the responsibility of the government for which the entry of foreign workers in the country are involved from country to country. Among the issues that can be covered is the purpose of foreign workers coming to this country, and their qualifications as foreign workers, and their background history. In terms of the manufacturing sector, foreign workers are not denied the salaries they are cheaper than local workers. However, the surplus of foreign workers has to some extent restricted the opportunities for local workers to find money at the same time the unemployment rate is very high. This can cause the local communities have to with outsiders but in this case, preference should be given to local workers because they are more entitled to get more than foreign workers. In conclusion, local workers must increase their efforts even harder to win the competition in the job market. In terms of communication, foreign workers who come to the country, most of them do not have basic local language and this gives a little problem in the workplace. Instructions given by the manager is not the same when the instruction is received by the worker and this can cause a variety of problems occur. In this case, this problem can be resolved if the training given to their language class to learn the local language while was studying the local culture. This training should be given by the board to ensure that orders received may be done well. Conclusion, understanding communication between each other is very important in an organization so that the information to be submitted should be accepted. 5

6 2.0 Problems Wong and Anwar (2003) as cited by Hamzah Abdul-Rahman (2012), highlighted that Malaysia is one of the countries which has become the focus of foreign workers and it has the highest ratio of illegal foreign workers in its workforce. Undeniably, the entry of foreign workers into the country has left its mark on the local community and to some extent may contribute in the industrial field. For general information, entry of foreign workers has left many negative effects than positive impact on society in the country. Their presence has somewhat threatened the life of the local community who can bring many problems. They all come into this country to overcome the labor shortage in the Malaysia construction market, over-dependence on foreign workers and the negative impacts induced have become a serious social problem. Migration may affect a country in term of social, economic, and political factors, and there are many fundamental tensions that underlie efforts to manage international migrant in a globalizing world (Yap, 2004). This has shown more foreign workers given priority over local workers. As we know, the salaries paid to foreign workers is far cheaper than on local workers. This cannot be ruled out that migrant workers are beneficial to the industry to save on their operating costs. In the context of the national economy, we can see the output of cash flows to other countries has caused our Ringgit currency has fallen sharply on nowadays. The government should take to address this issue seriously to ensure that Malaysia is able to compete with other developed countries. From that journal that research, many problem effects foreign workers in this country such as the language problem issue, social crime, illegal disease bring by them 6

7 2.1 Competition with local labour According to the statistics showing that about 2.5 million jobs in Malaysia and the available workforce of 11 million people for any sector. The arrival of foreign workers in the country are considered a necessity of labour in Malaysia yet despite the interest, if they result in the arrival of labour force exceeding the available job opportunities in Malaysia, will certainly affect the opportunity job to local people. For example, contraction sectors many fully by foreign labour regardless of skilled or skilled. This problem occurs when the difference between workers labour exist foreign and local workers. In this regard, foreign labour has willingness to take lower wages compared to local workers (Shafii, 2009). In the construction sector, local workers consider that it was inappropriate to cause their feeling less interest for working in this sector. Finally, causing employers to find the initiative to more foreign workers to cater for this sector as well as to minimize the cost. As the situation continues to cause the unemployment rate among local labour will increase and result in household income will decrease causing the existence poverty. 7

8 2.2 Spread of dangerous diseases The influx of foreigners also threat health Malaysians indirectly. This is so because, the study shows that Malaysia has been certified free of certain types of dangerous disease but the inclusion of labour began to cause the spread of the disease. Although many foreign workers who have a valid permit to undergo health and examination to work in the country but the fact is that many foreign labour that commit fraud regarding the status of their disease especially Indonesians. As for example curbing dangerous like syphilis, HIV, AIDS, malaria, cancer, and Hepatitis b as well as leprosy. Therefore, local workers who mingle these foreign workers would most likely infect. The spread of the disease is also caused by the opening of the dirty squatter houses in construction areas up to stagnant water and exist be breeding aides mosquito. Although many foreign labour, but valid exist also foreign labour into the country illegally cause they miss from the medical examination. For instance, diseases from foreign labour were AIDS through sharing needles injection drug addicts through the HIV virus spread. Therefore, the influx of foreign labour which is valid or not is indeed a dangerous illness to spread in the country. 8

9 2.3 Increment in criminal activities or social problem The crime rate in this country is a concern and this has raised some uncomfortable feeling in the citizens of this country, especially women. Hyoji (2007) as cited Abu Bakar (2002) explain that the foreign workers involvement in total crimes was about 2 per cent in 2002, with a ratio of 3.8 crimes per 1000 foreigners as opposed. These research shows that they come into this country have others purpose besides to find the job. They took the opportunity to release their satisfaction and to show their abilities to the people in this country. Therefore, society must help each other to each other to ensure harmony of universal life. Crime rates are always to rise from out of the year and most of their victims are children and women. The large number of foreign workers is seen as a security threat as it associated with rising crime rate and contagious diseases (Kanapathy, 2008). Social crime such as namely robbery, snatch theft, rape and murder can lead to death as a result of irresponsible behaviour by some individuals. If we care about current issues, especially in the mass media have informed that the crime occurred in this country can happen to anyone regardless of age. National statistics in increased from year to year and robbery cases recorded the highest crime rate if the kid in comparison with other crimes, namely, by 65 percent in 2005, 72 per cent in 2006 and by 75 percent in The robbery is the second highest record followed the rape and murder. This needs to be taken seriously by everyone because it involves the lives of people. In conclusion, people involved in this social crime must be dealt with severely according to his works. 9

10 2.4 The Language Problem Issue Loosemore and Andonaski (2007) as cited in Bust, Gibb, and Pink (2008) explained that the existing language problem among foreign workers, it cause affect any activity that involved compliance with work safety and health. Communication is vital things when we want communicate information to people who are around us. We know that communication is the transfer of information between or among people. Wah (2002) as cited in O Connor, and et. Al (2005), explains that critical language problem in the country also contributes towards accidents that occurs at construction side. When the information failed to reach the people who are supposed to, it can cause a variety of problems that can affect the surrounding communities. Communication helps managers to perform their jobs and responsibilities. Company must establish an industrial intermediate language in a work to ensure that the information to be delivered to the recipient clearly. For low-skilled foreign workers that have problem in local language, the manager must be concerned about their employees by giving them basic training on the language. Phenomenon of influx of foreign workers since early 1980ies has effect the language problem issue especially in the construction industry that had caused unpredictable accident. From 50 percent of the employee agreed and 41 percent of them agreed strongly that the existence of communication problem (language) among foreign workers in the industry had contributed towards the accident risk and workplaces (Haryati, 2009). The researcher s show the research had done by them, almost the accident in construction caused by misunderstanding in communication in each other s and causing the information to be conveyed is not as ordered. Researcher also provide that 48.7 percent of the foreign workers are unable to understand the instruction that was presented because of the lack of understanding for the English language whereby 66.7% of the foreign workers make mistake in their work as they do not understand the orders (Trajkovski & Loosemore s,2006). The results of a study conducted by researchers have shown, 13.9% is the root of the problem of communication between each other, which has caused damage in an industry. Even though the foreign people helps raised the country in aspect economy, the communication issues also contributed other problem. 10

11 3.0 Solution If we have problems, there is a way to solve the problem. In the case of foreign workers, we need to see from many angles aspects; so that problems can we face together. In this context, all walks of life that have Malaysian citizenship must be united in addressing the problem of excess foreign workers is the right way. The problem of foreign workers is no stranger to this country and this case involves between countries to country. The parties have to work hard in this case is the government because they have the absolute power to issue certain commands. Influx foreign workers had caused problems and this should be taken seriously by all parties how they think to solve the entire problem. Thus, there are various ways to overcome such problems is to impose legal action for the industry that do not follow the standard recruitment of foreign workers, impose appropriate punishment to those involved in the crime and so on. 11

12 3.1 Giving priority to local people work in various sectors To address the problem of where most of the sectors in Malaysia depend by foreign workers fully, the Government should give priority to local workers to work in various sectors in our industries labour. The Government plays an important role in promoting the interest of local people to the diversity of the sector in Malaysia either sectors of the construction industry, the manufacturing sector, agriculture, trade and so on. In the construction sector, the Government can attract the interest of Malaysians through awareness campaigns to influence local workers especially for also together in the construction sector as well as provide incentives economic privileges to participation of local workers in the industry such as bonuses, promotion and so on. This will create awareness on them as an opportunity to work in the industry. The Government can also enhance support to firms and industries to limit the use of foreign labour and to provide opportunities to the local people. In addition, the Government also hone local unskilled labour through the establishment of institutions across the country such as vocational school, skills Institute school to produce skilled labour in every State and reduce unskilled labour. Therefore, local workers will meet every job sector in the country and avoid the problem of competition work in every industry in Malaysia. 12

13 3.2 Law enforcement by the government Enforcement of the law firm shall be carried out in the country to curb the problem of harmful disease infections as a result of the influx of foreign labour. The Ministry of health shall conduct health examinations prior before brought to Malaysia. Health check can be performed twice or more, namely examining made in their country and in the country. When the outcome of the inspection shows that the infection or disease, the Ministry of health has the right to send back to their country of origin. In Malaysia, the Ministry of health need to regularly make examinations to the foreign worker. For example, each year all foreign workers are required to undergo medical examination and compulsory to all employees. If there are employees who do not cooperate, firm action must be charged as prison or fined compounded. In addition, the corresponding enforcement should also enhance strict control in the area and identified the small lanes that facilitate illegal immigrants into the country. Therefore, the problem of carrying disease can be overcome with existence law enforcement by country. 13

14 3.3 Eliminate illegal migration Malaysia is one of country in Asia who received many foreign workers. Malaysia record a total of 2 million registered (document or regular) foreign workers as of year-end 2008 (Ministry of Finance, 2010). The government should take serious about it as well as to reduce the surplus of foreign workers in the country. Every industry in this country need to comply with any instructions given by some parties, especially in the case of foreign workers. Foreign migrant workers should be reduced in accordance with the requirements of the national economy to ensure that current economic conditions are always to be stable. Among the measures that can be taken to reduce foreign workers is subject to strict qualification to ensure that employee s take is exactly the quality. Aspects to be taken into account as their educational background, prior criminal record, and so on. If the government wants to restrict foreign workers for temporary time, it is a good suggestion. This is the best way hold the foreign workers entry this country and it give an opportunity for the locals to get a job at the same time can reduce the rate of unemployment. 3.4 Provide them training basic language Understanding the communication is very important to ensure that the information to be communicated clearly get it. In the case of foreign workers in the country, they can be given basic training in the language used by an industry. Managers can help this problem with language learning classes provide in accordance with the requirements. Classes can be held 1 week 1 once and this helped a foreign worker to communicate. Construction worker facing high injury risks because they have had less training on safety and health as they were less able to communicate in English (O Connor et al., 2005). Habit intermediate language that is the language used in communication Malaysia and that managers could provide language courses for foreign workers and at the same time ensure that foreign worker to able communicate the usually language use by local community like Bahasa Malaysia or English. 14

15 4.0 Evaluation Today, foreign workers become an essential thing for the industry labour because their payment for the jobs is cheaper than the payment local people. They employee must know the effect from this activities for local community and country and it also must see all aspect so that the welfare state is preserved safely. This continuous exposure of foreign entry this country will cause the negative impact for the society. With unlimited access of thinking the foreign workers, the local workers have limitation to find the jobs which the industry gives priority for the foreign workers. Not of foreign workers give negative impact for the country, certain of them is very good but as we heard the news today, most of the crimes are involved outsiders. The law should be pertaining on the spreading of negative impact of foreign workers. According to official news, there are now about 1.2 million alien workers in the country and the number of the total, between 500,000 and 700, 000 are illegals workers. The number show significant tally and it could bring the problem for this country. As a result, the crime social always rise year by year and has led the local people do not feel comfortable with their presence. Foreign workers has caused various problems and this should be taken seriously by all parties to the current problems can be reduced. Rob is the highest note of which involved foreign workers if you want to compare with the other social crimes. These things can be overcome if the offender is appropriately punished for their behaviour. As the power and the negative of foreign workers become greatly day by day, the awareness of it should be improve and the community should learn about the effect so that they can handle it with care. We need to prepare them for what is coming because the effect influence to all everyone before this problem start to become more serious and undoubtly will pose a problem in the future. 15

16 5.0 Conclusion In conclusion, it is undeniable that foreign workers be able to solve the problem of shortage of labour, especially labour market in the construction sector in Malaysia. The study shows that many employers using foreign labour in their sector due to low wage rates and a high quality of work. Even, as a result of the dependence on foreign labour would indeed lead to a negative impact to the community and the country. The study shows that the effects of the use of foreign labour led to the spread of infectious diseases through a variety of ways, either through foreign workers entering the country illegally or exist few undocumented deceptive their health status or construction area of squatters. In terms of the impact of competition, shows that the incidence of poverty among Malaysians in the construction sector is increasing due to the construction sector fully by foreign labour and will influence unemployment in the country. As a result of the employment result in households do not have a fixed income until exist poverty. Therefore, the Government and the authorities must play an important role in large negative impact from the community in the country. The role played by the Ministry of health is important assets to ensure medical examination apply to foreign workers due to double-click where the inspection is made in the home country and the country in the country. Meanwhile, the border enforcement to increase monitoring in areas of suspected entry of foreigners in the country through lanes hiding them. The Government is also limiting the intake of foreign workers in every sector in this popular place for an employee only meets the sector in the country. The establishment of the institution is also one of the drastic measures taken by the Government to hone young talent to produce skilled labour. The problem of the use of foreign labour exist is also a communication problem where most among them difficult to communicate Malay language properly cause the instructions given by the employer is difficult to understand. Therefore, employers should establish a seminar for those who are not fluent in the Malay language to facilitate communication in terms of employment. Social crime problem is also one huge increase in foreign labour admission. The consequences for top a foreigner who are not working and has no income looking for the easy way by means of committing crime. Therefore, the Government must revoke the admission of foreign labour. Through future research aspects, we wish a study of the impact of negative foreign labour in Malaysia will be enhanced through a more thorough study of foreign labour so as not to bring the problem to the country and to expose Malaysians about the differences between foreign labour and local labour in the diversity of the sector. 16

17 REFERENCES Azizah Kassim Indonesian immigrants and urban squatting Kuala Lumpur, Malaysia. Indonesia Circle, 40, Bust, P.D., Gibb, A.G.F., & Pink, S. (2008). Managing construction health and safety: Migrant workers and communicating safety message. Safety Science, 46, Kerr, S.P. and Kerr, W.R. (2009), Economic Impacts of Immigration: Survey, HBS Working Paper ,Havard Business School, United States. Hamzah Abdul-Rahman, Chen Wang, Lincoln C. Wood, Shu Fung Lowa (2012), Negative impact induced by foreign workers: Evidence in Malaysian construction sector, journal habitat international 36 (2012) 433e443, University of Malaya. Kuala Lumpur, Malaysia. Sharma, Basu. Union Growth in Malaysia and Singapore. Singapore: Institute of Southeast Asian Studies, Schneider, K. and Otto, H-U. (2009) From Employability Towards Capability. Luxembourg. Lee, K. H., & Sivananthiran, A. (1996). Contract labour in Malaysia: perspectives of principal employers, contractors and worker. International Labour Review, 135(6), 75e91. Labour and human resources statistic (n.d.).retrieved Jan 25, 2012, from 3Alabour-and-human-resources-statistic Ramesh Kumar & Moona Haji Mohamed (2012), The Impact of Employment of Foreign Workers: Local Employability and Trade Union Roles in Malaysia, International Journal of Academic Research in Business and Social Sciences, October 2012, Vol. 2, No. 10 ISSN: Universiti Sains Malaysia, Pulau Pinang. Zaleha mohd noor, Noraini isa, Rusmawati said and Suhaila abd jalil (2011), the Impact of Foreign Workers on Labour Productivity in Malaysian Manufacturing Sector, Int. Journal of Economics and Management 5(1): (2011) ISSN X. Universiti Putra Malaysia, Kuala Lumpur. 17

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