Steps needed to control labour flow in region

Steps needed to control labour flow in region

P. Ramasamy
professor of political science
Universiti Kebangsaan Malaysia
The Straits Times
Asia News Network
Singapore

There are reasons to believe that Malaysia's tough immigration
law may not eliminate entirely the presence of illegal migrant
workers in the country. The law, which came into effect on Aug.
1, imposes a mandatory jail sentence and caning for those caught
entering the country illegally.

Before the law came into effect, the government announced an
amnesty in May for illegals to leave on their own accord. At the
same time, those who were rounded up were deported to their
respective places of origin. The majority of illegal immigrants
were from Indonesia and the Philippines.

It was estimated before the mass repatriation that Malaysia
had an immigrant population of nearly two million.

As soon as the law came into effect, a number of illegal
immigrants were jailed. It is estimated that 300,000 illegal
workers have been deported to date. Many more are being held in
detention centers.

The question is whether Malaysia can afford to deport the
illegals.

In the past, strong labour demand and the need to free
Malaysians to work in certain strategic sectors had prevented the
government from taking a tough stand against illegals. Given the
low cost of employing foreign labour, it developed a reliance on
them to attract foreign investments.

From time to time, some attempts were made to deport illegal
migrants. However, these moves did not have much economic impact
because those deported returned within a short time.

The long and porous borders between Malaysia, Indonesia and
the Philippines provided ample opportunity for those deported to
make a comeback. Moreover, the presence of numerous syndicates,
agents and corrupt officials facilitated the easy re-entry of
illegal migrants.

As long as there was a strong labour demand, the government
was able to tolerate the presence of illegal migrants. With wages
of illegals considerably lower than those of documented workers,
they could be absorbed easily into sectors such as construction
and plantations. In any case, Malaysians were not interested in
working in these two sectors.

However, following the financial crisis of 1997, job
opportunities for local and foreign labour began to vanish. Then,
the government began to move in a more systematic manner to
lessen its dependence on foreign labour in general and illegals
in particular.

A fall in the growth rate, lack of employment opportunities
and a drop in foreign direct investments were the factors that
forced the government to adopt restrictive measures.

Still, it would be difficult to remove all illegals as the
economy's crucial sectors -- construction, plantations and
domestic services -- are still dependent on both legal and
illegal foreign workers. This has led employers to make a strong
case to the authorities to go slow in deporting illegals.

What is needed is long-term measures to boost the economic
performance of countries in the region as a way to control and
regulate the flow of labour. Perhaps, it is time for ASEAN
countries to resolve the labour issue within the larger parameter
of economic development in the region.

It is unfortunate that the ASEAN Free Trade Area concept pays
hardly any attention to labour issues. It is not too late for
member nations to put labour on the agenda in the next round of
meetings.