Impact Of Foreign Workers On Malaysian Economy

According to the economic report.

Impact of foreign workers on malaysian economy. 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. 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. Many of our economic sectors are excessively dependent on foreign workers. When the government froze the import of new foreign workers some local furniture factories had to wind up owing to the.

Another concern over foreign workers is linked to the notion that the malaysian society may be over dependant on foreign workers resulting in over foreignization of the local economy. The bulk of the demand was for unskilled workers and emanated from the labour intensive segment of electronics textiles non metallic and mineral subsectors. The most evident way through which foreign workers can affect the economy is through labour market outcomes that is the impact on average wages and employment of locals. This situation is especially evident in urban households in which working parents rely too much on domestic maids to the extent where the upbringing of their children is entirely left to the discretion of these.

The malaysian economy is amongst the most highly exposed economies in the region to both chinese demand and supply. 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. In malaysia the effects of these china shocks may be dire. Globally the broad consensus is that foreign workers have a small and limited impact on these factors for three reasons.