-immigration-make-singapore-10766870Chua, M. H. (2014, August 12). A roller coaster decade. The Straits Times. Seow, J. (2018, March 5). Parliament: Tighter rules to support Singaporeans and raise quality offoreign workforce. The Straits Times. -rules-to-support-singaporeans-and-raise-quality-of-foreign-workforce-lim5) Case study: MOM guidelines and changes made to foreign quota in recent years (Kady)-singapores-tighter-foreign-manpower-policy20202019201820176) Case Study: Impacts of tightening foreign labour policies in Malaysia (Aruna)Background:•25% of all foreign-born workers in South-East Asia are employed in Malaysia•Represent 30% of the manufacturing sector•90% of migrant workers are low skilled workers•The following case study assessed impacts of reducing low and semi-skilled workers inMalaysia over a period of timeEconomic Issues:•Malaysia remained globally competitive in construction sector-Malaysia was able to remain competitive on a global scale by using foreign
labour in labour-intensive industries. As lower wages were paid to foreigners, manufacturing/ construction costs were cheaper which allowed for more businessdemand and higher profits.•Hindered adoption of automation in the manufacturing sector-Due to cost-effectiveness of employing low-wage earning foreign labour which incurs short-term profitability. However, using sheer manpower for labour-intensive industries reduces overall productivity due to lack of interest in technological advances and lowers competitiveness in certain sectors. •Caused wages to remain low for all workers in specific sectorsSocial Issues•Competitive threat between local and foreign employees caused tension between ethnic groups•Decrease in workplace productivity due to dilution of semi/ low skilled workersMalaysia's labor productivity growth lags behind peers among developing countries. Thenation recorded growth of 3.5% in 2014, compared with rates of 7% in China and 5.6% in the Philippines, according to government data.Policies Introduced•Employer bear cost for progressive levy depending on number of foreign employees (implemented in 2016)•Foreign-Workers first out policy (implemented in 2009)•Minimum wage system for all nationalities in labour-intensive sector (implemented in 2016)•Cash payment for employers when local employees are hired (implemented in 2019)-From next year, qualified individuals will be paid RM500 (S$164) a month for two years on top of their salaries.-Companies taking part in the two-year scheme will get up to RM300 a month, for every new local employee.
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