KUALA LUMPUR: There are approximately 2.4 million active foreign workers employed across six formal sectors and one informal sector in the country as of Sept 30, 2024, says Steven Sim.
The Human Resources Minister stated that low-skilled foreign workers constitute a significant portion of the workforce in labour-intensive sectors in the country.
"As of Sept 30, based on the statistics from the Immigration under the Home Ministry, there are 2,470,781 active foreign workers in Malaysia," he said in response to a parliamentary question from Datuk Awang Hashim (PN-Pendang).
Awang had asked the Ministry to reveal the latest figures of foreign workers by sector and its stance on limiting the involvement of foreign workers to specific sectors, as well as to reduce reliance on foreign labour while optimising local workforce participation.
The highest number of foreign workers are employed in the manufacturing sector, with a total of 771,327 individuals, followed by construction (698,407), services (448,572), plantation (266,600), agriculture (183,086), foreign domestic helpers (102,037), and mining and quarrying (752).
Sim added that his ministry was committed to limiting the involvement of low-skilled foreign workers in all economic sectors.
"This stance is in line with the government’s policy under the Twelfth Malaysia Plan 2021-2025 (RMK-12), which caps the proportion of foreign workers at no more than 15% of the total national workforce," he said.
To reduce reliance on foreign labour and optimise local workforce participation, he said several measures have been implemented by the government, including maintaining the decision made on March 18, 2023, to freeze new foreign worker quota approvals.
"This decision supports the policy of limiting foreign labour employment to 15% of the national workforce by 2025, as outlined under RMK-12," he added.
Aside from that, he stated that the freeze on new quota approvals also prioritises the employment of local workers in the labour market before offering vacancies to foreign workers.
"The government will also implement the Multi-Tier Levy Mechanism (MTLM) for all sectors, except plantation and agriculture, effective Jan 1, 2025, to reduce dependence on low-skilled foreign workers.
"All Regulatory Agencies (AKS) must determine the actual need for foreign workers in their respective sectors and sub-sectors.
"This includes sectors overseen by agencies such as the Home Ministry, Investment, Trade, and Industry Ministry, Plantation and Commodities Ministry, Works Ministry (via the Construction Industry Development Board), Domestic Trade and Cost of Living Ministry, Agriculture and Food Security Ministry, Natural Resources and Environment Ministry, Transport Ministry, and Tourism, Arts, and Culture Ministry," said Sim.
He added that the government will continue to enhance training funding under the Human Resource Development Corporation (HRDC) through employer levy contributions to upskill and reskill workers.
"Review and revise the existing minimum wage to align with current living costs, and as a result, encourage more local workers to fill positions in low-wage jobs traditionally occupied by low-skilled foreign workers," he explained.
