PETALING JAYA: The country should recruit more foreign workers to fill the labour shortage in construction, manufacturing, and especially the plantations sector where locals are reluctant to work, said Malaysian Employers Federation (MEF) President Datuk Dr Syed Hussain Syed Husman.
“Malaysians do not have the necessary experience in the plantation sector compared with Indonesians. While efforts have been made to reduce our dependency on foreign workers through automation processes, the need for them in the plantation sector remains significant.”
Syed Hussain said employers need to offer higher salaries to attract equally capable Malaysian workers for the various sectors, but this would undermine the cost competitiveness that is crucial to remain competitive against emerging economies in the region.
He added that long-term solutions to overcome hiring foreign workers include investing in research and development in agriculture technology to enhance efficiency.
He said the MEF has been collaborating with the International Organisation for Migration (IOM) and the International Labour Organisation Global Business Network on Forced Labour (ILO GBNFL) to educate its members on the procedures for hiring foreign workers.
“In 2023, we collaborated with SMEs and the IOM to conduct a capacity-building workshop on fair and ethical recruitment and employment of foreign workers, which provided participants with the tools to strengthen their policies and practices.
“We also collaborated with ILO GBNFL in launching a due diligence toolkit for fair recruitment of foreign workers to help companies, particularly SMEs, to set out a due diligence process when hiring workers from abroad.”
The Home Ministry reported that as of February, Malaysia has 2.12 million registered foreign workers who originate from Bangladesh, Indonesia, Nepal, Myanmar and India, among others.
Syed Hussain said if foreign workers are found medically unfit under the Foreign Workers’ Medical Examination Monitoring Agency, they will have to be returned to the source country, which will delay the recruitment process.
“A 2019 report by the Khazanah Research Institute said foreign workers do not directly impact employment opportunities and wages of Malaysians because they generally fill different roles within the economy.
“Foreign workers typically occupy unskilled positions, while Malaysians predominantly hold semi-skilled and skilled jobs.”
He said for legal purposes, smaller companies usually hire recruitment agents to assist in handling issues related to employing foreign workers, and that the MEF strongly advocates that companies carry out their due diligence to ensure there is no forced labour during the hiring process.
To ensure security, an initial step companies must take when hiring foreign workers is to conduct thorough screenings of prospective employees in their source country, he added.
“Candidates should be evaluated for suitable skills based on the positions being offered, their health status, and any indication of criminal or harmful behaviour.”
He said to protect Malaysians and foreign workers from misunderstandings and negative interactions, companies must provide comprehensive cultural training to help them understand Malaysia’s social norms, legal expectations, and workplace etiquette.
“This also includes local customs and traditions, offering practical guidance on daily interactions, and ongoing support through mentorship programmes. Such an approach will enhance the well-being and productivity of foreign workers, and foster a more harmonious working environment.”
Negative interactions between foreign workers and local communities can be reduced by ensuring that their accommodation and transport do not excessively impact any specific local areas, he added.
