KUALA LUMPUR — Malaysian businesses need to step up investments in automation and gradually reduce their dependence on foreign workers, particularly for dirty, dangerous and difficult (3D) jobs, said Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani.
With the 2027 Budget set to be tabled next month, Johari said excessive reliance on foreign labour had reduced the incentive for companies to modernise their operations and resulted in cost structures being based largely on foreign worker wages.
“We want to emphasise the importance of bringing automation into our operations and production as quickly as possible,” he said after opening the Voices of Her 2026 Forum at the World Trade Centre on September 8, as reported by NST.
Johari said the availability of foreign workers was unlikely to remain at current levels, making it increasingly important for businesses to prepare for a more automated workforce.
“In the future, foreign workers will not be as readily available at the rate they are today,” he said.
He said companies of all sizes should begin transitioning towards automation, although any reduction in their dependence on foreign workers would be implemented progressively rather than immediately.
According to Johari, the heavy use of foreign labour has also created an uneven competitive environment, with companies that have limited access to foreign workers facing higher costs than those able to employ them in large numbers.
“The problem is that we have long relied heavily on foreign workers without investing in automation. Our cost structures remain low because we benchmark them against foreign worker wages. That is our problem,” he said.
Johari also called for greater scrutiny of applications to hire foreign workers, saying employers should first identify which positions genuinely involved 3D work and provide details on the salaries and qualifications required for other positions.
He also disputed claims that Malaysians were simply unwilling to take up available jobs, arguing that employers should consider whether the wages offered provided sufficient financial incentive.
“Some tell me: 'Datuk, we have offered jobs, but locals do not want them.' What are you offering? How much is the salary?” he said.
Johari pointed to Malaysians who make lengthy daily commutes to Singapore as an example of workers being willing to take on jobs when the financial returns make them worthwhile.
The 2027 Budget is scheduled to be tabled in the Dewan Rakyat on October 9.
