Foreign labor a major issue in Malaysia

Foreign labor a major issue in Malaysia

By P Ramasamy

There are more than one million foreign workers, many illegal,
in Malaysia. This is both an asset and a liability to the
country's development.

Malaysia seems to be caught in a development dilemma. With
more than a million foreign workers in the country, it finds it
difficult to extricate itself from the status of a labor-
intensive nation. While high growth rates have been achieved in
the past few years, Malaysia's objective of attaining the status
of a developed country by 2020 seems to be fraught with practical
difficulties. One obvious problem is the transition from a labor-
intensive to a more capital-intensive and technology-oriented
economy with the backing of a skilled and educated workforce.

According to one estimate, there were approximately 1.2
million foreign workers in Malaysia in 1992. The bulk came from
Indonesia, and the remainder from countries such as the
Philippines, Bangladesh, Myanmar and Thailand. A substantial
portion of foreign labor consists of those who came into the
country illegally. It is common knowledge that Indonesians and
Filipinos account for the highest number of illegal immigrants,
especially in the East Malaysian state of Sabah.

The illegal entry of immigrants, particularly from Indonesia
and the Philippines, has been an on-going affair. They enter the
country either as tourists, and stay on after the expiry of their
visas, or without going through the normal legal procedures.
Given the tales of how money can be made in Malaysia, many defy
the odds to enter the country through the services of syndicates,
recruiters and middlemen. It is a truism that there are more
illegal than legal immigrants.

It is not that the government condones the entry of illegal
immigrants into the country. Far from it, strict measures such as
detentions and deportations are undertaken from time to time to
curb the flow of illegal immigrants. But, somehow, the pull of
the economy has not deterred those trying to enter the country
illegally. The Malaysian government has set up a number of
detention camps to hold those who have been arrested for illegal
entry. Quite recently, the police were criticized by some human
rights organizations for alleged inhuman treatment of illegal
immigrants in a camp in Semenyih, Selangor. The police, however,
denied any mistreatment of the detainees and allowed some members
of the public to inspect conditions in the camp.

The large presence of foreign labor has a definite impact on
employment patterns in Malaysia. Foreign participation in the
workforce is conspicuous in the agricultural and forestry sector
(about 30 percent foreigners), construction industry (60
percent), and the manufacturing sector (about 10 percent).

Malaysian trade unions have been upset by the fact that the
large pool of foreign labor in the country has depressed the
wages of the locals. They argue that employers taking advantage
of this have denied a rightful share to local labor. Whether
there is any merit in what the trade unions say, the fact is the
presence of foreign labor has to some extent weakened the
bargaining position of trade unions. For instance, one trade
union in the plantation sector has even gone to the extent of
recruiting foreign laborers as its members. It is not clear what
benefits these members will receive by such a move.

It would not be accurate to say that foreign labor has only
been a burden to Malaysia. Rather, it should be acknowledged that
foreign labor has contributed greatly to the development of the
country. For this contribution, foreign workers have had to pay a
heavy price. Those coming into the country have been much abused
by agents and syndicates bent on making quick money.

Once in the country, they often fall prey to unscrupulous
employers who have a tendency to exploit labor at its weakest
point. Many of these laborers have become indebted to their
employers. To discharge their debt they have to work long hours
akin to those Indians and Chinese who were brought into the
country at the beginning of the century. Not the least, the need
to stay clear of the authorities imposes great pressure on
day-to-day life.

A decade ago, it was alleged that illegal immigrants were the
source of crime. Pressure was put on the authorities to control
the inflow of immigration. While no statistics were published to
establish the connection between illegal immigrants and the crime
rate, it was often assumed that they were causing great problems
in Malaysia. It was in this context that crimes committed by
illegal immigrants were sometimes blown out of proportion. It was
not that illegal workers were all law-abiding citizens; they too
committed crimes. But the argument that there was greater
frequency among the illegals in committing crimes has not been
borne out in terms of hard evidence. But Malaysians from all
walks of life continue to harbor the view that illegals are
crime-prone. Perhaps this view has to do with their illegality
more than anything else.

While foreign labor has been an asset for Malaysia for many
years, it could turn out to be parasitic in coming decades. Its
cheapness, unskilled nature and, above all, its impermanent
status will mean it will be a great liability in Malaysia's quest
for developed country status. What is crucially needed in the
coming years is a labor force that is permanent, dynamic,
skilled, educated and knowledgeable. These are the features that
Malaysia will need to make the transition to a developed country
by 2020.

Dr. P Ramasamy is an Associate Professor with the Department
of Political Science, Universiti Kebangsaan Malaysia.