PETALING JAYA: Malaysia has more than 2.1 million foreign workers in its labour market, with the largest groups coming from Bangladesh, Indonesia and Nepal, the Human Resources Ministry revealed.
As of June 30, 2025, there were 2,144,789 foreign workers from 15 source countries. Of these, 803,322 are from Bangladesh, 543,514 from Indonesia and 332,712 from Nepal. Other significant numbers come from Myanmar (173,630), India (106,929) and Pakistan (76,011). Smaller groups included workers from the Philippines, Thailand, Vietnam, Sri Lanka, Cambodia, China, Laos, Uzbekistan and Kazakhstan.
The ministry said the number of undocumented migrants could only be estimated through Immigration Department enforcement operations.
In a written reply to Datuk Awang Hashim (PN-Pendang), the ministry said the government remained committed to ensuring the recruitment and management of foreign workers is “transparent, systematic and prioritises labour protection”.
Recruitment, it said, must be based strictly on industry needs and not used for commercial gain. Employers are required to obtain prior approval from the Director-General of Labour under Section 60K of the Employment Act 1955 before applying for quotas. They must also submit valid business documents to prove that applications reflect genuine demand.
To better regulate hiring, the government has introduced a multi-tier levy system and strengthened bilateral memoranda of understanding to set clear rules on costs, processes and procedures. The ministry said Malaysia maintains a ceiling of 15 per cent foreign workers within its total labour force. With current numbers nearing that cap, the government has kept its freeze on new recruitment.
It added that the levy system – designed to account for competitiveness, operating costs and inflationary pressures – aims to reduce dependence on foreign labour and push industries towards automation and mechanisation. A review will be conducted to assess its effectiveness.