This document outlines a student research project on the impact of foreign immigrant workers on the Malaysian economy. It provides background on Malaysia's history of immigration since British colonial rule, when many workers were brought from China and India. Currently, foreign workers make up about 2.8 million of Malaysia's workforce, and they fill important roles in industries like construction that locals tend not to. However, large numbers of undocumented workers and dependency on foreign labor also present challenges. The student will research this issue through literature reviews and analysis of Malaysia's changing immigration policies to determine whether foreign workers are an overall opportunity or threat to economic development.

1. University of Nottingham Malaysia
School of Politics, History and International Relations
Module: Global Political Economy
Semester: Autumn 2012
Module Convenor: Christopher Napoli
Student: Mannat Kaur
Student ID: 011857
Programme: MA in International Relations
Working Title: Voluntary International Migration in this present
day globalizing world: threat or opportunity?
Research Question: How does the presence of foreign
immigrants workers contribute towards the economic
development of Malaysia? Are they an important part of the
economic engine of Malaysia? Foreign Immigrants in Malaysia
threat or opportunity to the Malaysian Economy?
Background: With about 100 million people living outside
their place of birth and 17 million refugees
scattered all over the world, almost all
countries are now part of the
transnational migration network, some playing dominant roles
in sending out or
receiving labour, while others are involved
in both. Malaysia is dominantly a host
country, however, there are strong
evidence to suggest that many of its
citizens are working and residing abroad.
Malaysia from the time of British Colonial rule has had an
eminent presence of foreign immigrant workers in the country.
Multi-ethnic population in Malaysia demonstrated the long
history of migration. About 40 percent of its 26 million people
are of migrant stock. At that time, they were mostly unskilled
workers forcefully brought from China and India to meet the
demands of cheap labor force working in tin and rubber
industries. By the 1970s Malaysia’s industrialization program

2. had became heavily dependent on labor-intensive manufacturing
production. Thereafter, Malaysia became the largest labor-
importing country in Southeast Asia in the 1990s. In 2007
migrant workers comprised about 2.8 million of the 12 million
labor force. Till date, it still continues to rely heavily on
especially unskilled foreign workers as they are doing the jobs
that are shunned by the locals in Malaysia. E.g. working in
construction sites. The skilled immigrants or expatriates bring
in fresh talent, knowledge; enhance skills and Malaysia’s
productivity by enriching the local labor force.
Threats
1. Illegal migrants.
2. Pressure on public amenities services such as healthcare and
education.
3. Protection of rights of the foreign migrants
4. Dependency on foreign workers.
However, Malaysia is working towards the efficient
management of the inflow of foreign immigrants as there are
over one million undocumented illegal migrant workers in the
state. There are very limited numbers of highly skilled foreign
migrants in Malaysia. The number of expatriates in our country
stood at 31, 371 accounting for 3% of the total migrant workers
in the nation. It is also trying to be less dependent on these
foreign workers so that the jobs can be taken by their nationals.
This has resulted in tight immigration policy and control at the
same time promoting policies like ‘Malaysia my second home’
for more experienced skilled expatriate workers to come work
in Malaysia and contribute towards its economic growth/
development. Talent Corporation is an organization in Malaysia
that is extremely active and works towards attracting and
retaining high skilled human capital in Malaysia.
In spite of the tight immigration control and policies foreign
immigrants make up a large part of the workforce in Malaysia.
One in every five workers is a foreigner. There is much more

3. foreign unskilled labor workforce than highly skilled
professional expatriates’ population in Malaysia.
Question to the Answer
· Introduction: Explain the event/debate: brief history about the
foreign immigrant workers and migration in Malaysia under
British Colonial rule
· Pre Independence foreign worker policies
· Push and pull factor migration theory- relevance of theory
· Literature reviews/ prior studies done: 3 literature reviews on
the impact of foreign immigrant workers on the Malaysian
economy.
· Current foreign immigrant workers situation in Malaysia.
(Skilled and unskilled)
· Malaysia’s foreign worker policies: post independence:
unskilled labor policies, Malaysia my second home policy,
Talent Corp etc.
· Implications of foreign immigrant workers on the economy in
Malaysia; In what ways has it contributed to the growth of the
Malaysian economy, how is the presence of foreign immigrant
workers seen as a opportunity for the recipient country
(Malaysia), what are the problems Malaysia is facing due to the
presence of the large foreign immigrant workforce in the
country (threat).
· Conclusion: Restate problem, what you have done in the
assignment, findings: first, second, third etc.
Conclusion
Malaysia cannot do without its foreign immigrant workers.
Nonetheless, this large migrant workforce in Malaysia also has
its setbacks. The Malaysian government needs to review its
immigration control system and policies to bring in more highly

4. skilled people to boost the growth of its economy. In this way,
Malaysia will gain even more than lose from the foreign
immigrant workforce and voluntary global migration.
Useful Links
http://www.une.edu.au/asiacentre/PDF/No22.pdf
https://www.google.com.my/#q=role+of+foreign+immigrant+wo
rkers+in+malaysia&hl=en&tbo=d&ei=cf6xUIK4FsT_rAfM0oCo
BQ&start=10&sa=N&bav=on.2,or.r_gc.r_pw.r_qf.&fp=a499c4c
c35a1fde7&bpcl=38897761&biw=1280&bih=645
http://www.alfea.org/img/OutsourcingCompanies.pdf
http://fep.um.edu.my/images/fep/doc/2009%20Pdf/FEA-WP-
2009-026.pdf
http://cgge.aag.org/Migration1e/ConceptualFramework_Jan10/C
onceptualFramework_Jan105.html
http://www.une.edu.au/asiacentre/PDF/No22.pdf
http://www.unescap.org/stat/meet/egm2006/ses.4_Malaysia.pdf
http://www.wbiconpro.com/210-DEVADASON.pdf
http://www.mbam.org.my/mbam/images/MBJ3Q05pdf/@CROSS
BORDER%2878-91%29.pdf
http://www.asian-migrants.org/files/AMY_2005_Malaysia.pdf

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