Impact Of Foreign Workers On Malaysian Economy Pdf

The growing presence of foreign workers in malaysia can be explained by excess demand for labour combine with rapid economic growth as well as the cheaper cost of foreign workers.

Impact of foreign workers on malaysian economy pdf. Foreign labour especially the blue collar workers contributes quite significantly to the national economy as they contribute about 10. 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. Recent study by parasnis 2010 investigates the relationship between natives labour migrants labour and capital. There are too many job openings for hard labour in factories that our people would not normally apply except in rural area due to the working environment.

This paper is to examine the impact of foreign labour on malaysian economic growth using panel data from three sectors. The call to allow foreign workers in manufacturing emerged in the late 1980s as the economy recorded several consecutive years of buoyant growth. Recent study by choy 2004 for the korean economy shows that the positive impact of immigration critically depends on the price flexibility in the economy and there are larger welfare. The foreign workers know that malaysia is facing a shortage of cheap labour and they would demand higher wage while at the same time would dilly dally on their job moral hazard.

The present study examines the issue using a more. Malaysia foreign workers trade union rights local workers and employability introduction for over the past decade malaysia has over dependence on the foreign workers the number of foreign workers has increase gradually in malaysia. They found that both local and foreign workers are substitutes at various job categories. The bulk of the demand was for unskilled workers and emanated from the labour intensive segment of electronics textiles non metallic and mineral subsectors.

According to the economic report. General equilibrium model and concludes that foreign workers exert a negative impact on the local unskilled workers by widening the wage gap. The impact of foreign workers on labour productivity in malaysian manufacturing sector foreign workers unskilled local and foreign workers. Although several studies attempt to examine issues relating to foreign labour in malaysia no serious effort has been made to assess the impact of foreign labour on malaysian economic growth.

Manufacturing services and construction for the period of 1990 2010.