Why Foreign Workers Are Important to Malaysia’s Economy
Posted: May 21, 2021
Foreign workers of different skill levels produce significant benefits for the Malaysian economy. The economic contribution of foreign workers in Malaysia should not be overlooked when it comes to economic development. In general, foreign workers in Malaysia are mainly concentrated in a few states. The majority of Malaysian immigrants or foreign manpower prefer to live and work in Sabah. The proximity of Sabah to other Southeast Asian countries such as Indonesia and the Philippines is one of the primary reasons for its success in attracting foreign workers.
Sabah's cultural diversity and prominent position in agriculture have sparked significant foreign workers to choose work in the region. Selangor and Johor are two other Malaysian states with a high concentration of foreign manpower. According to recent surveys and estimates, almost two-thirds of all foreign employees in Malaysia are comprised of the States of Sabah, Selangor, and Johor. Besides, Kuala Lumpur, Sarawak, Pahang, and Penang are other states in Malaysia that are favorite to many foreigners, and this is mainly due to the vast job opportunities in these states.
There are many reasons why the Malaysian economy needs foreign workers. One of the main thing is that foreign workers provide work wherever and whenever it is necessary. Foreign workers contribute either skilled or labour workforce to the Malaysian economy. Manpower workforce is very important in Malaysia's manufacturing industry to ensure its continuity and development. At the same time, there are also many foreign workers working in Malaysia's agricultural sector. The construction industry, wholesale and retail, and the housing industry are among other sectors in Malaysia with relatively large numbers of foreign manpower.
Malaysia's economic growth is also partly driven by the contributions from foreign workers. The economy of the country will thus continue to expand. Malaysia was able to produce and manufactured a large number of goods and export to other countries thanks to the contributions of these foreign workforces, especially in the manufacturing and agricultural sectors, as well as other sectors that do not necessarily require skilled labour. As a result, foreign workers are essential not only to their employers but also to the overall economic growth of the country.
Owning a business is one of the simplest ways to recruit a foreign worker into the Malaysian labour force. Manufacturing, construction, agriculture, and services are among the most easily accessible sectors in Malaysia for foreigners to work in. Potential foreign worker employers in Malaysia should be aware that the Ministry of Home Affairs Malaysia has imposed a quota rule on the jobs of foreign workers.
Foreign workers should also comply with Malaysia's legislation so that they are able to obtain the visa and then the work permits to secure employment in Malaysia. However, obtaining these working permits in Malaysia could be one of the most difficult challenges for companies that have only recently begun operations or entered the Malaysian market. At the end of the day, we suggested to those businesses or employers that are interested in recruiting foreign workers should consider contacting a specialist manpower agency in Malaysia that can assist them in obtaining the services of the foreign workers.
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