I am encouraged by ‘likes’ to my story entitled “Malaysian industries reliance on foreign workers are involved with lower investment in technology” published by newswav.com on 15 October 2026. Raja Iskandar Shah bin Raja Ibrahim Shah, Chairman of the Management Committee (MC), Aura Residence Putrajaya articulated “Personally, I am pro-migration but the policies must be very clear, and implementation must be consistent & equitable. In Aura, the MC insist all foreign workers must have permit. Not just because of compliance, but also to protect welfare & rights of the workers. Most local micro-businesses do well scaling up foreign workers' skills. The new minimum wage for Malaysian graduates and semi-skilled workers, is a huge structural change. Suddenly, it changes the perception for school leavers that it is worth to pursue education: there is now a real wage differential for a TVET graduate compared to an uneducated cleaner. Creating positive social impact.”
AIM & HBS Alumnus Zakaria Mohd Nor, commented "The thesis that foreign workers do not replace locals because they fill jobs locals refuse is a central pillar of labor economics. The dynamic is a complex paradox. While migrant labor immediately plugs critical shortages in '3D' (Dirty, Dangerous & Demeaning) sectors, their massive presence simultaneously distorts the natural job market, inadvertently trapping local wages in a ‘race to the bottom’. There is an evolving policy shift as authorities introducing a multi-tier foreign worker levy to penalize high dependency and to integrate registered refugees into the formal 3D workforce, to utilize existing domestic talent pools. Ultimately, local aren't just refusing the stagnant wages, the impact led to endless supply of foreign labor.”
Currently, while Malaysia has made progress on several fronts, there remains a broad reliance on low-cost production models that lean on low-skilled labor while keeping a lid on wages to maintain business margins. The relative ease of obtaining low-skilled foreign workers in Malaysia contributes to these tendencies. Government has to ensure policy alignment with its economic objectives.
Zulkifly Baharom (hajizul50@gmail.com) is a content creator under the Newswav Creator programme, where you get to express yourself, be a citizen journalist, and at the same time monetize your content & reach millions of users on Newswav. Log in to creator.newswav.com and become a Newswav Creator now!
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