Reducing Reliance on Low-Skilled Foreign Labour: A Focus on Malaysia’s Policy Direction

Malaysia has long grappled with the challenge of balancing its labour market needs with the goal of reducing reliance on low-skilled foreign workers. In recent months, this issue has come to the forefront of national debate, particularly in the context of the restaurant and food service industry. On January 23, Economy Minister Rafizi Ramli made it clear that the government will not entertain calls from restaurant associations to ease restrictions on hiring foreign workers. Instead, the focus remains firmly on cutting down the nation’s dependence on low-skilled foreign labour. This stance underscores the government’s commitment to shifting towards a more sustainable and equitable workforce strategy. By prioritizing local workers and upskilling the domestic labour force, the government aims to build a more resilient economy that is less vulnerable to the fluctuations of global labour markets.

The Proposal to Hire Refugees: A Potential Win-Win Situation

In response to the ongoing labour shortages, particularly in sectors like the food and beverage industry, a novel proposal has emerged: allowing refugees formal employment opportunities. Tahir, a representative of the Pan Malaysia Restaurant Association (PRESMA), has argued that granting refugees the right to work legally could be a win-win situation for all parties involved. Not only would it provide restaurants with much-needed workers, but it would also enable refugees to contribute to the economy while earning a dignified living. Tahir pointedly questioned the current system, where refugees are allowed to remain in the country but are barred from working legally. “What is the point?” he asked, highlighting the inefficiency of shouldering the costs of sheltering refugees without allowing them to contribute to the economy. He suggested that the government could issue special cards to refugees, enabling them to work in establishments such as mamak shops, which are popular eateries in Malaysia. This approach, Tahir argued, would bring an informal workforce into the formal economy, reducing illegal activities and ensuring that both employers and employees operate within the bounds of the law.

Addressing the Challenges of Cultural and Economic Integration

While the idea of hiring refugees may seem appealing, it is not without its challenges. Arulkumar Singaraveloo, CEO of the Malaysia HR Forum, which specializes in training human resource professionals, acknowledged that cultural integration could pose initial hurdles. Refugees, many of whom have fled conflict zones and are unfamiliar with Malaysian norms, may require time to adapt to the local work culture. However, Arulkumar noted that these challenges are likely to be temporary, as many refugees are already living in Malaysia and have begun to adapt to the local way of life. Furthermore, the process of integrating refugees into the workforce could be more straightforward compared to recruiting foreign workers from other countries. Refugees are already present in the country, which eliminates the need for lengthy processes involving regulatory approvals and negotiations with source countries. This ready availability of labour could help alleviate the acute shortages faced by industries such as construction, plantations, manufacturing, and food and beverage services.

Expert Opinions: Weighing the Pros and Cons of the Proposal

Arulkumar also emphasized that providing legal employment to refugees would offer them a means of survival while supporting key sectors of the economy. “Since refugees are already in the country, providing them with legal employment would not only support industries in need but also offer these refugees a means to survive,” he said. This perspective highlights the dual benefits of the proposal: it addresses the labour shortages while offering a humane solution to the refugee crisis. However, not everyone is convinced that this is a sustainable solution. Critics argue that the proposal may not fully align with the country’s long-term labour policies, which prioritize upskilling local workers and reducing dependence on foreign labour. Human Resources Minister Steven Sim, in his response to PRESMA’s proposal, stressed the importance of ensuring that any such initiative complies with the country’s laws and policies. He highlighted the need for a comprehensive assessment of the nation’s readiness to implement such a plan, including the preparedness of employers to hire refugees.

Balancing Humanitarian and Economic Interests

The debate over hiring refugees highlights the delicate balance that governments must strike between humanitarian concerns and economic priorities. On one hand, allowing refugees to work legally could provide them with a sense of dignity and purpose, while also contributing to the economy. On the other hand, there are valid concerns about the potential impact on local workers, as well as the need to ensure that any such policy is implemented in a manner that is fair, transparent, and lawful. As the government moves forward, it will be crucial to engage in consultations with all stakeholders, including employers, workers’ unions, and refugee communities, to develop a policy that is both practical and equitable. By doing so, Malaysia can chart a course that addresses its labour needs while upholding its values of compassion and inclusivity.

Moving Forward: A Call for Thoughtful Policy Design

In conclusion, the proposal to hire refugees as a solution to Malaysia’s labour shortages offers both opportunities and challenges. While it has the potential to alleviate workforce shortages in critical industries, it also raises important questions about cultural integration, policy compliance, and economic sustainability. As the government considers this proposal, it must prioritize thoughtful policy design that takes into account the needs of all stakeholders. By engaging in open dialogue and conducting thorough assessments, the government can craft a solution that supports both the economy and the refugee community. Ultimately, the goal should be to create a workforce strategy that is inclusive, sustainable, and aligned with the nation’s long-term vision for prosperity and development.