Malaysia Lifts Migrant Labor Ban

February 7, 2022

Malaysia is loosening new regulations that prohibit most businesses from recruiting foreign labour, despite business groups warning that the decision might hamper efforts to recover the country's economy, which has been devastated by the coronavirus outbreak. Several lockdowns over the last two years have helped keep COVID-19 infections low, but have pushed the country's unemployment rate higher than it has been in decades, displacing nearly 300,000 Malaysians. To help locals get back to work, the Human Resources Ministry announced that all businesses save construction and agriculture would be prohibited from hiring foreigners.

Business organizations were caught off surprise by the new regulations, and quickly warning that they would deprive other businesses that rely largely on foreign workers. The foreign workers is primarily fill the low-wage jobs that most Malaysian don't want. According to analysts, migrants rarely fight for jobs with locals and are more likely to generate jobs for competent Malaysians than steal them.

We still need migrant workers in the Malaysian economy. As a result, some people suggested that they should be allowed to hire foreign workers from other industries who may not be needed by their previous employers. Malaysia's palm oil industry, the world's second largest after Indonesia's, is currently facing the most severe labour shortages and would suffer the most as long as migrants are prevented from crossing sectors.

The online portal will be active from January 28 to accept applications for the recruitment of foreign workers in the plantation sector under special exemption. Beginning February 15, applications for foreign labour in other industries would be accepted. Authorities was agreed that foreign worker recruitment will be broadened to encompass all industries other than the plantation sector. Agriculture, manufacturing, services, mining and quarrying, building, and domestic service are all allowed.

In a bid to address the country’s acute labor shortage, Malaysia has lifted its ban on migrant workers. This change in policy is a clear sign that there is an urgent need for more manpower in Malaysia. In order to maintain economic growth and social stability, it is necessary for companies to hire foreign workers. This decision will also help those companies who are struggling with a shortage of skilled workers or those who are looking to expand their business. Companies can now easily hire foreign manpower from an agency without having to go through the hassle of applying for permits and getting approval from the authorities & government.