Project Paper Group Relationship Bertween Foreign Workers Dependency And Malaysian Employment.docx - The Relationship Between Foreign Workers Dependency

Project Paper Group Relationship Bertween Foreign Workers Dependency And Malaysian Employment.docx

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The Relationship Between Foreign Workers Dependency and Malaysian Unemployment ABSTRACT The issue of foreign workers has received increase media and national attention. The transition of employment system has stirred unemployment rate in Malaysia at devastated level. Foreign labour has become an increasingly attractive option for employers as it supported by policies that variously less regulatory and certification processes and fast track work permit approval. This global interdependencies and inequalities complex phenomenon have created scarcity among local employees where distribution of gains and losses increasingly unequal whereas the pressure for the government to develop labour policies is intensifying. Furthermore introduction of significant changes in recruitment phenomenon has ended in painful and traumatic atmosphere which barely acceptable by local workforce in Malaysia. This article discussed on relationship between number of foreign labour increases and the unemployment of local labour in Malaysia whereby secondary data have been collected and tested by using analysis and simple regression analyses.
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1.0 INTRODUCTION Malaysia’s transformation from an agricultural based economy to manufacturing or service based in the early 1990s has moulded the country into a magnet attracting foreign workers. This phenomena of the influx of foreign workers gain further momentum with the advent of the implementation of WTO rules on trade. Currently, Malaysia hosts foreign workers from numerous Asian countries particularly Bangladesh, Indonesia, Nepal and Myanmar. Initially their arrival to Malaysian shores solicited a mixed reaction from all stake holders concerned. However, during the 1997-98 World economic crisis and once again in economic downturn recently, Malaysia’s resolve as one of the Asian Tiger economy is severely tested. Despite its initial solid economic foundation, built largely on the platform of cheap foreign labour that was expected to withstand the economic onslaught, the country weathered the crisis severely bruised. Its dependence of cheap foreign labour compounded the situation further with accusation directed mainly by local labour unions, Non-governmental organization etc that contributed to local unemployment. The debate on the impact of foreign labours and local unemployment is still raging for nearly 16 years without any conclusive outcome. 1.1 CURRENT SITUATION IN MALAYSIA Currently government has agreed to approve the recruitment of foreign workers from African and India to meet the demand in 13 small-scale business sectors, which are facing manpower shortage in year 2018. Human Resources Minister M. Kulasegaran said the approval was given after considering the plight of businessmen in these sectors such as restaurants, grocery shops and the textile industry, which was raised in a memorandum submitted by the Malaysian Associated Indian Chamber of Commerce and Industry (MAICCI) to the Prime Minister.
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