Malaysia Imposes ban on entry of migrant workers starting July

KATHMANDU:  In a significant move, the Malaysian government has declared a ban on the entry of migrant workers, effective from July onward. The decision comes as the current influx of foreign labor in the Malaysian job market reaches substantial levels.

To facilitate an organized transition, the government has outlined a plan to allow migrant worker entries until mid-May, after which all entry will be halted.

The Ministry of Home Affairs in Malaysia has issued directives to businesses, urging them to conclude necessary worker recruitments before the end of May.

Home Minister Seri Saifuddin Nasution Ismail conveyed during a press conference on Friday that the primary objective is to regulate and control the surge of migrant workers. He stated, “A policy has been formulated to limit foreign workers to 15 percent of the total labor force. Companies have until May 31 to bring in migrant workers within the approved quota.”

With Malaysia’s labor force consisting of approximately 17 million individuals, the government’s directive aims to cap the migrant worker percentage at 15%, equating to 2,550,000 workers.

However, the current number of immigrant workers in Malaysia stands at 2,130,931, among which Nepali workers constitute a significant portion, accounting for around 500,000.

One of the contributing factors to the declining appeal of migrant work in Malaysia is the reported lack of overtime pay by companies, leading to unemployment among some foreign workers.

This shift in policy underscores a reevaluation of the country’s labor dynamics and emphasizes the need for sustainable practices in the employment sector.

It’s worth noting that Malaysia has prioritized Nepali workers since 2007, marked by a bilateral agreement on a zero-cost labor contract between the two nations.

The upcoming restrictions signify a notable change in Malaysia’s approach to managing its labor force and maintaining a balance in the employment landscape.

Fiscal Nepal |
Monday March 11, 2024, 10:44:27 AM |

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