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.