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.