MGT 269 UITM

CHAPTER 1: INTRODUCTION
1.1 Background Of Study
Malaysia has a longstanding history of receiving immigrants since centuries ago when the
Malacca kingdom was founded in the 1600s. During that time, a small number Chinese, Arabic
and Indian traders settled in the country. In the mid-nineteenth century, a large flow Indians and
Chinese entered the country to work in tin mining fields and agricultural plantations.
After achieving independence in 1957, Malaysia continued to receive a stream of
immigrant workers. Most of them hail from Indonesia and the Philippines. The inflow of
immigrant workers was not restricted until the number of illegal immigrants ballooned in the
1980s. Currently, there is an estimated 3.3 million foreign workers in Malaysia, whereby 2.1
million are legal immigrant workers and the remaining 1.2 million are illegal immigrants.
The huge inflow of foreign workers were mainly led by the rapid expansion of the
Malaysian economy under Mahathir’s leadership when an average of 9.5 percent during the early
1990s until the Asian financial crisis. This expansion created many new jobs in Malaysia which
was inadequately filled by Malaysia’s population size and in some cases, resulted from the
reluctance of Malaysians to take up low-paying jobs in certain sectors, for instance construction
and plantation. When the PETRONAS Twin Tower was built, the majority of the construction
workers were from Indonesia and Bangladesh. Nowadays, plantation jobs are no longer
appealing to locals and are increasingly dependent on Indonesian labor. Moreover, Malaysia’s
main agricultural export – palm oil depends on these workers.
Thus, to support the expansion and the competitiveness of the economy, a steady supply of
foreign labor was needed. In addition, the rising participation of women in the work force and
the rise of the middle class created a demand for domestic helpers which compose of foreign
workers, particularly Filipinos and Indonesians.
Unfortunately, the huge population of foreign workers, especially illegal workers has been
linked to the rise in crime rates, including robbery, prostitution, murder, identification card
forgeries and theft. As a result of this, the public has called for more stringent immigration

regulations. The large influx of immigrants, especially Muslim Indonesian immigrants in East
Malaysia has also raised ethnic tensions as most of them have been granted citizenship. This has
caused a feeling of resentment within the local aborigines (eg.Kadazan and Dusun) and the
Chinese population who perceive the government is allowing more migration to increase their
support in elections.
Similarly, there have been reports of abuses on foreign workers which led to human rights
abuse charges by mainly Indonesia and the Philippines, further causing a rift in their relations
with Malaysia. The local government was criticized for their treatment towards both legal and
illegal workers during raids. One of which was a raid that took place after a Sunday Mass at St.
John’s Cathedral in Kuala Lumpur on March 27, 1994. About 1,000 Filipinos were arrested in
that incident, whereby a majority of them were domestic helpers. The arrested foreign workers
were required to present their official documents before being released. Of the 1,000 detained,
only 20 were illegal. As a result, this incident was widely publicized and scrutinized and the
Philippine government demanded the Malaysian government to issue an apology as it was
deemed “insensitive” and disrespectful to arrest worshippers at a Catholic church.
In 1996, a new and inconsistent registration scheme for immigrants was introduced as a
result of rising demand for labor due to the early 1990s economic expansion. Under this scheme,
the registration and legalization period took more than six months. After finalizing it, the
government received vast amounts of money from levy taxes as hundreds of thousands of foreign
workers were registered. Once the deadline passed, employers with illegal workers were imposed
with penalties and the illegal workers were faced with the prospect of deportation. The
punishments imposed included fines of up to RM50, 000 for every illegal immigrant, caning or
imprisonment for illegal immigrants and recruiting agencies.

Figure 1.1.1
Based on the study, property crime is one of the famous case in Malaysia. There are several
types of property crime that have been recorded from Parliament by Azlan Zamhari from
Malaysiakini. This case has increases of the cost of living as the number of Motorcycle Theft
increase based on 2012 and 2013. Kuala Lumpur has higher number in property crime because it
is main city for Malaysia where people come and spent their time at that place.
Robbery Car Theft
Motorcycl
e Theft
Commerci
al Vehicle
Theft
Snatch
Theft
Break In
Property Crime In 2012 24299 16196 51259 4526 2500 24939
Property Crime in 2013 16258 12545 37081 3745 1564 17470
0
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
NumberofPropertyCrime Property Crime In Malaysia

Figure 1.1.2
Based on the study, violent crime is one of the famous crime in Malaysia as Malaysia has
recorded in gang robbery is higher than murder, rape, armed gang robbery, armed robbery,
robbery and assault case. In this case, Kuala Lumpur and Selangor have record higher number of
cases among the other country. Gang robbery usually happen in mini market, which is small type
of shop.
Murder Rape
Armed
Gang
Robber
y
Gang
Robber
y
Armed
Robber
y
Robber
y
Assault
Violent Crime In 2013 (Jan -
Sept)
478 2068 78 12659 17 2621 4430
Violent Crime In 2012 602 2964 110 12738 17 3275 6244
0
2000
4000
6000
8000
10000
12000
14000
NumberofVoiolentCrime Violent Crime In Malaysia

Statistics of Harmful Disease by Expatriate
Figure 1.2.1
All expatriate should undergo health examination at government hospital or clinic to
ensure their health condition were in good condition, which is free from all types harmful disease
that can effect their performance on work. Besides that, it also can prevent Malaysian’s from get
infecting disease from expatriate. Because of that, Health Ministry and Interior Ministry given a
task by government to established health system such as Fomema Sdn.Bhd(Fomema) for
supervise health examination to this expatriate in their own country. Health Minister, Datuk
Chua Jui Ming, state that cabinet should provide this facility at least before end of 2003 to allow
health examination on expatriate as soon as their arrives at this country. That health examination
are important to ensure that only expatriate that are good health condition only can work in this
country. On the other hand, all expatriate that diagnosed with health problem will be transfer
back to their original country. Among 500 133 expatriate which undergo health examination on
2001, 9 264 of them were suspected had a variety types of harmful disease. This health
examination are intend to trace epilepsy, kidney failure, tibia, drug addicted, high blood pressure,
diabetes, malaria and etc. 80.2% of them were from Indonesia, Bangladesh ( 13.2%), Philippines
( 2.6%), India ( 1.9%) and 2.1% from other countries. Founded that 44.3% from 9264 of them
were diagnosed suffering Hepatitis B, while HIV/AIDS consist of 23.1% , Tibia (15.8%) and the
other disease include drug had 22%.
Statistics of harmful disease by expatriate
Hepatitis B
HIV / AIDS
Tibia
Drug

Statistics of Malaysia Unemployment Rate from 2010 to 2015
Figure 1.3.1
The unemployment rate in Malaysia was recorded 3.1 percent and the percentage was
constant from 2013 to 2015. This statistics above shown that on year 2010 was the most highest
percentage among 2010 until 2015 which is recorded as 3.30%. The percentage was slightly
down to 3.05% on 2011. On the next year the percentage had a difference 0.02% which is in year
2012 was 3.03% so unemployment rate become decrease. Unfortunately in 2013 the percentage
of unemployment rate was increase to 3.10%. Based on this statistics, we can conclude that the
least percentage was in 2012 which is 3.03%. Unemployment Rate in Malaysia is reported by the
Department of Statistics Malaysia.
2010 2011 2012 2013 2014 2015
Malaysia 3.30% 3.05% 3.03% 3.10% 3.10% 3.10%
2.85%
2.90%
2.95%
3.00%
3.05%
3.10%
3.15%
3.20%
3.25%
3.30%
3.35%
Percentage
Malaysia Unemployment Rate

Figure 1.3.2
Based on this statistics, this research can conclude that sector maid had a highest
percentage in 2002 with 22.9% and the lowest percentage in 2014 with 7.5%. For manufacture,
in year 2012 with 38.6% was the highest besides in year 2003 with 28.8% was the lowest. For
sector construction the highest was in 2003 with 18.9% and the lowest was in 2001 with 6.0%.
Services had highest sector in 2014 with 13.0% and in 2002 with 6.0% had a lowest. Followed
by sector agriculture, in 2012 had 29.1% which is the highest and the lowest was in 2014 with
23.5%.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Percentage Number of foreign workersin Malaysia by
sector from2000 to 2014
MAID
MANUFACTURE
CONSTRUCTION
SERVICES
AGRICULTURE

Figure 1.3.3
This statistic shown that Indonesia had the most foreign worker that works in Malaysia.
In year 2000, Indonesia had 74.8% followed by 2001 was 74.7%, 2002 was 73.8%,2003 was
73.9%, 2004 was 69.7%, 2005 was 66.7%, 2006 was 62.8%, 2007 was 56.1%, 2008 was 52.6%,
2008 was 52.6%, 2009 was 51.7%, 2010 was 43.6%, 2011 was 49.9%, 2012 was 47.5%, 2013
was 45.4% and 2014 was 39.4%. As year by year, this statistic show that number of foreign
worker from Indonesia become decrease.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Number of foreign worker in Malaysia by country
origin from 2000 to 2014
INDONESIA BANGLADESH THAILAND PHILIPPINE PAKISTAN
MYANMMAR NEPAL INDIA OTHERS

Figure 1.3.4
This statistics show that the most expatriate by country in 2013 was China. While
Philippines had least expatriate. In 2012, China also had the most expatriate and United
Kingdom had least expatriate.
CHINA JAPAN
SOUTH
KOREA
INDIA
MALAYS
IA
THAILA
ND
UNITED
KINGDO
M
UNITED
STATES
AUSTRA
LIA
PHILIPPI
NES
2013 10291 9788 6013 3888 3425 2779 2731 2546 2303 2168
2012 16731 12803 8190 5923 5330 4146 3292 4644 3644 3588
0
5000
10000
15000
20000
25000
30000
Totalexpatriate Expatriate By Country between 2012 and 2013

Figure 1.3.5
The country with highest unemployment rate is Djibouti followed by Congo in the
second position and Bosnia and Herzegovina in the third. Unemployment rate in Djibouti fell to
54% in 2010 from 59.5% in 2002. Congo unemployment rate went down to 41.6% in 2013 from
49.1% in 2012. Unemployment rate in Bosnia and Herzegovina declined to 42.81% in October
2015 from 42.97% in September 2015. Unemployment rate in Haiti grew to 40.60% in 2010
from 9.61% in 2009. Kenya unemployment rate went up to 40% in 2011 from 12.7% in 2006.
Search results country, indicator forecast, economic calendar and news for unemployment rate
highest. Updated on January 8,2016.
59.50%
49.10%
42.97%
9.61%
12.70%
54%
40%
42.81%
40.60%
40%
Djibouti
Congo
Bosnia & Herzegovina
Haiti
Kenya
HIGHEST UNEMPLOYMENT RATE (TOP 5 WORLD
RANK)
After Previous

Figure 1.3.6
The country with the lowest unemployment rate is Qatar followed by Cambodia in the
second position and the Belarus in the third. Unemployment rate in Qatar fell to 0.2% in 2014
from 0.3% in 2013. Cambodia unemployment rate went up to 0.3% in 2013 from 0.1% in 2012.
Unemployment rate in Belarus was reported at 0.5% in 2014. Unemployment rate in Thailand
was last registered at 0.9% in November 2015. Unemployment rate in Benin was recorded at 1%
in 2013. Search results country, indicator forecast, economic calendar and news for
unemployment rate lowest. Updated on January 8,2016.
0.30%
0.10%
0.60%
0.70%
1%
0.20%
0.30%
0.50%
0.90%
1%
Qatar
Cambodia
Belarus
Thailand
Benin
LOWEST UNEMPLOYMENT RATE (BOTTOM 5
WORLD)
After Previous

1.2 ResearchProblem
1.2.1 Rising Crime Rates in Malaysia
A violent crime or crime of violence is a crime in which an offender uses or threatens force upon
a victim. This entails both crimes in which the violent act is the objective, such as murder, as
well as crimes in which violence is the means to an end. Based on this study, Malaysia had
recorded seven types of violent crimes in the 2012 and January to September in 2013. Malaysia
had recorded violent crime in gang robbery is the highest rate with 12659 case in 2013, 12738
case in 2012 and armed robbery is the lowest rate with 17 case were recorded in 2012 and 2013.
Property crime is a category of crime that includes, among other crimes, burglary, larceny, theft,
motor vehicle theft, arson, shoplifting, and vandalism. Property crime involves the taking
of property, and does not involve force or threat of force against a victim. Based on this study,
there are six types of property crime that happen in Malaysia. Malaysia had recorded motorcycle
theft is the highest rate with 51259 case in 2012 and 37081 case in 2013 while the lowest rate is
snatch theft with 2500 case in 2012 and 1564 case in 2013.
Immigrants create a problem at house estate, especially luxury housing are often the target of
thieves entered. Therefore, it caused worry to residents to leave their homes for a long time,
especially when on vacation. Housing estates that often broken make them into fear and anxiety
to residents in areas such as housing, prone to criminal activities which may threaten their
families' lives and property.
The lives of the residents turned chaotic and stressful. This is due to lack of respect for society
by disrupting girls and wives who were then close them. The further harm is when immigrants
do sexual harassment against women and children. This will make their trauma and a serious
blow to them as well as their mental slightly distorted.
People anxious to get out of the house and do not want to mingle with other people. They assume
that, in the house is the best place to protect themselves and it causes them to become anti-social.

1.2.2 The problem of unemployment among the local population caused by foreign migrant
workers
Unemployment will lead to the economic and social impact. The economic impact includes
reduced national output, thus lowering the standard of living and slow down the country's
development. High unemployment may also increase the incidence of poverty in a country. The
negative social impact of unemployment that include family and creating disorder can lead to
fights and divorce and increased crime as a result of financial and mental problem.
Unemployment increases susceptibility to cardiovascular disease, somatization, anxiety,
depression, and suicide. In addition, unemployed people have higher rates of medication use,
poor diet, physician visits, drug use and lack of exercise.
Besides, lack of financial resources, and social responsibilities may push unemployed workers to
take jobs that do not fit their skills or allow them to use their talents. Unemployment can cause
underemployment and fear of job loss can spur psychological anxiety, depression, lack of
confidence and huge amounts of stress. An economy with high unemployment is not using all of
the resources, specifically labor, available to it. Since it is operating below its production
possibility frontier, it could have higher output if all the workforce were usefully employed.
However, there is a trade-off between economic efficiency and unemployment: if the frictionally
unemployed accepted the first job they were offered, they would be likely to be operating at
below their skill level, reducing the economy's efficiency. During a long period of
unemployment, workers can lose their skills, causing a loss of human capital.
Being unemployed can also reduce the life expectancy of workers by about seven years. High
unemployment can encourage xenophobia and protectionism as workers fear that foreigners are
stealing their jobs. Efforts to preserve existing jobs of domestic and native workers include legal
barriers against "outsiders" who want jobs, obstacles to immigration, and/or tariffs and similar
trade barriers against foreign competitors. High unemployment can also cause social problems
such as crime; if people have less disposable income than before, it is very likely that crime
levels within the economy will increase. High levels of unemployment can be causes of civil
unrest, in some cases leading to revolution.

1.2.3 Harmful Disease
Diseased is a pathological condition of a body part, an organ, or a system resulting from
various causes, such as infection, genetic defect, or environmental stress, and characterized by an
identifiable group of signs or symptoms. Meanwhile harmful is from the word harm thats mean
physical or mental damage or injury something that causes someone or something to be
hurt, broken, made less valuable or successful, etc.
The migrations of illegal immigrants also bring another big problem to our country that is
dangerous diseases. As we know illegal immigrants come from rural areas and when they enter
our boundaries they do not even go to the public or the private health department for a medical
check-up. Diseases such as HIV, AIDS and TB are some of the disease brought by them.
The health problem will enlarge because this illegal immigrant brings lot of health
problem from their country. For instance the HIV, it refers to the smuggling of women for the
purposes of forced prostitution and this will lead to HIV virus in other hand it will increase the
total of fatality. Because of the diseases, entire citizens become afraid to be affected by those and
some of them have been victim of the diseases. Nowadays, more and more people are suffering
from these diseases and this contributes towards the cases of death. Besides causing various
social problems, the continuing arrival of migrants especially illegal ones has serious impact on
issues pertaining to health. This is because they might be carrying dangerous or transmittable
diseases such as tuberculosis, malaria, leprosy, sexually transmitted diseases (STD) and AIDS.
Illegal entry will also enables those with contagious diseases to filter through and spread it to the
population.
TB is an air-bone disease and the immigrant often use public transport such as buses and
trains. The several type of diseases cause the Malaysian people to have higher chance to get the
disease easier and the number of people that effect the disease will have less chance to survive
much stronger compared to the normal people. This harmful disease that brought from the
immigrant will cause the next generation afraid to go outside to be social with the other people
and make them to be life with unhealthy life-style.

1.3 Research Objectives
1.3.1 To identify the effects of excessive foreign workers to the citizen and economy of
Malaysia.
1.3.2 To identify which effects that mostly influencing towards citizen and economy of
Malaysia.
1.3.3 To provide recommendation towards local people in Malaysia in overcoming the
problems of excessive foreign workers in Malaysia

1.4 Scope of Study
A study has been conducted at University of Teknologi Mara (UiTM), Campus Alor Gajah.
100 sheets of questionnaires were distributed to Diploma students. Among the students
involved were from Accounting, Art and Design, Media and Communication, Banking,
Insurance, Office Management, Business Study and Tourism. Among the areas involved
were Tun Hamzah college, Tun Perak college, Tun Putih college, Bentara Cafe and library.

1.5 Limitation of Study
There are many barriers while conducting this study. One of the barriers are lack of
participation from the respondent. Some respondent did not give their full cooperation and
they do not answered the given questionnaire honestly and playfully. Another barrier is lack
of references which is difficult to find the right answers and clear explanation to answer to
any question wisely. Next barrier is time constraints with timetables and there was a clashed
of assignments with discussion meetings, colleges and curriculum activities. Each member
must give full commitment to the association that they were involved. Last but not least, lack
of cooperation from members as busy schedule of activities outside the classroom make all
the members did not want to be bothered on weekends. In addition, members settle in
different colleges and make it difficult to meet fellow members.

2.0 The Effect Of Excessive Foreign Worker In Malaysia BasedOn Student’s Perception.
2.1 Increase in Crime
Our social security is also threatened. Obviously, the influx of foreign workers without
control causes an increase in the crime rate in the country. Some of these illegal immigrants are
criminals who are wanted by the authorities in their home country. They fled to Malaysia in
order to save themselves and escape the invasion of their home country authority. Unfortunately,
they continue to commit crimes in Malaysia. Cases of robbery, murder, kidnapping and rape
frequently occurs and made headlines across the chest, chest akhbar.Ini cause trauma victim will
bear all the time and influenced the development of mental and emotional victim itself.
In fact, some housing estates are often broken into every night for a long period. This led
to the local population lives in fear and feeling very anxious to leave home for long periods,
especially during school holidays, festivals and schools. Housing estates that often broken make
them into fear and anxiety to residents in areas such as housing, prone to criminal activities
which may threaten their families' lives and property.
The lives of the residents turned chaotic and stressful. This is due to lack of respect for
society by disrupting girls and wives who were then close them. The further harm is when
immigrants do sexual harassment against women and children. This will make their trauma and a
serious blow to them as well as their mental slightly distorted. People anxious to get out of the
house and do not want to mingle with other people. They assume that, in the house is the best
place to protect themselves and it causes them to become anti-social.
Cases of Indonesian criminals shot dead in police raid was not an unusual case again.
Such news has become a common thing to be heard every single day. In fact our troops had to be
deployed to Semporna, Sabah to strictly control the security of the people of Sabah and the
Philippines to face the pirates who used sophisticated weapons to commit robbery in broad
daylight. This incident is very disturbing Malaysians who have relatives or friends living in
Penisular Malaysia. Even the police, the army and the leaders were working hard to resolve this
crisis as quickly as possible. Proof, the former chief of the National Police (IGP) Tan Sri Musa
Hassan admits immigrants who exceed the 2.4 million people in the country contributed to the
increase in the crime rate.

2.2 Varying Cultures and Customs of Foreign Countries
The entry of foreign workers in Malaysia to diversify the culture and customs draw with
Malaysians can learn, explore and understand the culture of foreign countries. This can improve
general knowledge among students. As we know, the country is known for its multi-ethnic
society and culture and customs of different nations and religions.
The arrival of foreign workers to our country in sharing their culture in Malaysia is able
to diversify its culture through a number of aspects such as how to use, type of food, the way
people communicate with each other and others. For example, an employee of Japanese nationals
working in Malaysia. Indirectly, employees will share with colleagues about the culture and
customs practiced in this country like manners when meeting with friends. Japan will bow to
each other and talk with civility. Japan also have their own identity in terms of consumption,
they wear kimono for women.
This is a very good culture to be held in our country to create a society that values high
moral and respected by the people outside the country, in the words of Albert Einstein who said
that every action will cause a reaction. It is true that there are some foreign workers brought their
yellow culture deliberately designed to influence people's minds with negative thoughts and
secular. However, as a mature and intelligent society, we should be discerning enough to
differentiate between good and bad things.
Malaysians can learn about the social system and culture of other countries better
understand their sensitivity to tolerance, cooperation and mutual respect, and can prevent the
occurrence of hostility between different races or different countries. In short, the influx of
foreign workers have a positive impact on the culture and customs of our country and also
diversified to attract foreign tourists to visit Malaysia. In conclusion, it is clear that the arrival of
workers from various countries such as Indonesia, Bangladesh, the Philippines and Thailand had
a positive impact both economically and socially. However, the government cannot
underestimate their arrival to the country.

2.3 Increase In Productivity
Foreign worker is a person employed in a country to which the person is not a citizen.
These workers are hired to work in the host country. They workers can be classified into highly
skilled worker or low skilled worker and unskilled workers. Those foreign workers can be
classified into legal workers or illegal workers. Those foreign workers bring positive and
negative effects.
The increase in productivity is because of highly skilled educated expatriates. Highly
skilled workers are essential towards developing world or host-countries. The government has
engaged the highly skilled educated expatriates in the manufacturing, technology, education and
other fields.
The expatriates are know more about others country culture and technology, learn the
positive and useful skills. From this study, the locals can learn and know more about other
people countries’ culture and technology, learn the positive and useful skills from foreign
workers. Explore locals’ knowledge of others country and use the knowledge to develop our
country.
Productivity of the country is increasing substantially as increase the growth national
product of country. Most foreign workers spend their lives in host countries, not only they work
in host country but they will do economic activities in host country as well as consuming goods
and services, investing money and doing another economic activities that contribute to the
national income of host country in growth national product (GNP).
The expatriates are helping the country that face shortage of human capital. Due to this
problem, by hiring foreign worker is the best solution that country can take to remain
competitive in the world market.
Besides, unskilled foreign workers to fill the niche of working areas which locals do not
want to work. They are well prepared to do jobs that local people do not want to do for instance,
such work in remote areas, construction or even do some dangerous or dirty jobs. These mean
that companies can provide wide range of services at lower costs.

2.4 Impact On Wages.
This section shows the effect of immigration on relative wages across industries.
Estimations indicate that changes in employment caused by increases in immigration do not lead
to changes in the wages of Malaysian workers. The results suggest that a sufficient number of
Malaysian workers are highly mobile across industries (and possibly also regions) so as to allow
wages to rapidly equalize. Imbalances caused by immigration show up in changes in
employment patterns of Malaysians, not in different wages across sectors.
The increases in demand for Malaysian workers due to immigration do not result in
changes in relative wages across industries. However, they do increase the overall wage level in
Malaysia. Positive effects are most apparent when foreigners work in low-skilled services and
agriculture.
In the long-term this of course encourages workers to increase their educational
attainment, thereby contributing to the increased educational attainment of Malaysians over the
past twenty years. Effect of Immigration on Wages Source: Author’s Calculations with DOS,
Labor Force Survey Results give clear indication that the main beneficiaries of immigration in
Malaysia are older workers with medium education levels in the low skill intensive services,
agriculture and mining sectors. These workers are generally immediate supervisors of foreign
workers in low-skill sectors and their skills are the most complementary to those of immigrants.
Since foreigners mostly have minimal education—and in many cases, have language barriers—
Malaysian workers with secondary school education work as their employers or supervisors.
Availability of large numbers of low skilled and relatively cheap foreign labor increases
the returns to this specific group of workers. One can even argue that many sectors of the
Malaysian economy are based on foreign workers supervised by secondary-school educated
Malaysian workers and those sectors would probably not exist in the absence of this specific
arrangement. University graduates are not affected by foreign labor since their tasks and/or
occupations and their sectors rarely overlap with those where foreigners work, thus limiting the
possibility of complementarities.

2.5 Health Disease ( Tuberculosis)
As we know foreign workers come from rural areas and when they enter our boundaries
they do not even go to the public or the private health department for a medical check-up.
Diseases such as HIV, AIDS and TB are some of the disease brought by them. The health
problem will enlarge because this foreign workers brings lot of health problem from
their country.
In a local report, Health Deputy Minister, Datuk Seri Dr Hilmi Yahaya said the influx
could be a factor contributing to a major spike in tuberculosis (TB) infection among locals in the
country. TB is identified as one of the six infectious diseases that pose a threat to the population
after HIV. It is transmitted from person to person via droplets from the throat to the lungs
through air whether coughing, sneezing, spitting or even speaking.
The latest statistics show that TB is one of the latest outbreaks in our country that is fast-
rising, with a death rate even higher than dengue. There were approximately 20,000 cases of TB
reported among the locals with over 1,000 fatalities yearly. Another alarming fact is that a large
number of foreign workers who were brought in legally have failed medical screening for TB.
Health authorities also claimed that most medical certificates issued in their country of origin
were false and unreliable.
Out of 1.27 million foreign workers screened, 3.0 to 3.5 percent failed the second
screening test for TB and other diseases. Citing Chief Executive Officer, Mohd Hatar Ismail
from the Foreign Workers Medical Examination Monitoring Agency (Fomema), the latest
statistics in 2013, showed that a total of 16,751 foreign workers suffer from TB, and these
exclude illegal immigrants.

2.6 Economic Increase
Immigration plays different roles and creates different impacts on countries. In the
theory of development, labor migration is very important in supporting countries' developmental
activities such as the existence networks and maintenance of linkages between countries until
social support of families and consumption needs. Skilled and professional migrants offer a
comparative advantage in enriching a country's position in the global political economy. Labor
migration as critical ingredients is vital for the establishment and development of plural cultures.
In general, there is a growing recognition that migration can improve the economy development
of the country.
Migration is expected to influence the productivity of the country. The difference in skill
profiles of potential migrant labors will affect the level of productivity. The average level of
productivity will tend to be lower if immigrants consist of individuals who are not professional
compare to native labor. On the other hand, immigration on potential output will be smaller if
immigrants tended to be more skillful. The contributions of the immigrants in difference industry
will also have impact on the productivity growth. The contribution and innovation of immigrant
labors may help in improving the productivity of a country. If the immigrant labors are mostly
employed in lower productivity industries, this may reduce the productivity of the nation as it
raise the number of labors in lower productivity industries. However, at the same time, this
situation will increase the productivity of every individual in the economy if immigrants and
native workers are complementary.
During the year between 1980 and 1990, there was a shift in industrial transformation to
become more export substitution industrialization and involved in foreign direct investment. The
outcome of result had showed a high rate in employment growth and economic growth in the
Malaysia which the labor markets could not offered. Due to the booming modern industries,
native labors had taken up the opportunities of employment. This had also given the opportunity
for migrant labors in penetrating the modern sector of the economy. The first industry that
experience labor shortage was agriculture sector and followed with the manufacturing sector and
construction sectors. Migrant labors from neighboring nations had come to Malaysia to search
for employment in these industries. As a result, Malaysia has become the largest labor importer
in Asia from late 1990s.

2.7 Over Dependence On Foreign Workers
Malaysia’s construction industry is one of the many sectors that are heavily dependent on
foreign labor. The desperate call for foreign workers to fill the current void clearly flies in the
face of the perceived waning of our dependence on them.
The dependence, according to practitioners and academicians alike, is the result of the
country progressing to a level that leaves many of the younger generation here unwilling to take
up work that is sometimes defined as the 3Ds (dirty, dangerous and difficult).
Malaysians also refuse to take on jobs deemed menial and as such, employers in these
sectors are forced to look to foreign labor to meet the demand. Financially, the over-dependence
on these workers has resulted in an outflow of currency. In 1996, it was reported that more than
50% of these workers’ salaries were sent to their home country.
The negative implication is most of the foreign workers who enter the country are
unskilled and, as a result, employers either have to provide training to equip them or face
potentially low levels of productivity as well as quality.
Another report, Dependency of Foreign Workers in Malaysian Construction Industry,
cites the case of the Sultan Ismail Hospital in Pandan, Johor Baru, that was forced to close on
Sept 26, 2004 due to a fungus attack. The then Works Minister Datuk Seri S. Samy Vellu
reportedly said the damage to the building was caused by the untrained foreign workers during
the hospital’s construction.
Socially, the increasing number of foreign workers in the country has brought about a rise
in communicable disease particularly TB, Hepatitis B, malaria and leprosy as 3% of total number
of legal foreign workers failed their health screenings conducted locally and were sent back to
their respective countries.
Still, the presence of foreign workers in great numbers continues to be a sore point with
some quarters, who want enforcement to be upped to ensure that the number of illegal workers in
the country is kept under control. This article was first published in the June 21, 2014

2.8 Foreign Worker Brings Negative Culture To Society
The appearance of foreign workers also raises the question of culture. Most foreign
workers were from Indonesia, Vietnam, Myanmar, India, Philippines, and Thailand, which had
assimilated their culture into our culture. Just look at their behavior while in public places that
are far different from the local culture. In our eagerness to accept them, we must also be aware of
the cultural differences that exist between us and them.
These cultural issues that impact on the effort also extended our youth. Our teenagers
will undoubtedly be affected by the presence of this new culture. Could it be that our language
will change along with the existence of this foreign language? Maybe it would not happen but to
some extent we will be impacted what so ever. Posted by Noor Azman Mahat.
We know this group ventured into Malaysia is not just ' take away ' alone, even
bringing together customs, way of life, negative cultural practices or their country of origin to the
country. Among the negative culture that brought in was fond of fighting, drunkenness,
promiscuity and most frightening is killing to settle a dispute between them. For example,
recently the country was shocked by the incident a group of Myanmar in Penang who slaughter
their fellowmen to cut off the limbs of victims and throw it all over the place. Further in:
http://www.bharian.com.my/node/27800
Moreover, their presence in this country indirectly bring in their culture which partly
conflict with the norms of the local community. For example, they practice free mixing between
men and women, some even staying at home without lawful wedlock. There is also an
unashamedly sipping wine in a residential area predominantly locals. In the big cities, nor the
influx of immigrants has also raised the problem of squatters because of high rents caused the
lands they invaded the kingdom and establish squatter.

2.9 Foreign workers can make our technology further ahead with their skills and knowledge
Consequently, their arrival will have effects on the Malaysian’s economy. Some of the
major effects are the transferring of technology, skills and knowledge to our country, growth of
economic activities and competitions of jobs opening to the locals too.
First and foremost, highly skilled workers are crucial towards developing Malaysia. The
government has engaged the highly skilled educated expatriates in the manufacturing,
technology, education and other fields. By doing so, the foreign workers will be transferring their
skills and knowledge to the Malaysians. For example, the Japanese transfer their manufacturing
technology in automotive industries. As a result, we are now producing our own cars as we have
the knowledge and expertise to do so. Economically, Malaysia also managed to monetarily save
as Malaysians are trained locally instead of being sent overseas.
Apart from that, the foreign workers contributed to the economic growth as their presence
put demands on the growth of public amenities and services. Malaysians economy will be more
alive as new housing areas are being construct, transportations projects to be improved and even
more entertainment and shopping centers are being open to cater for their needs. There will also
be demands for other necessities such as food, health, educations and clothing. Thereby, these
will further spur the economic activities.
On the other hands, when we hire the foreign workers, job opening for the locals are
diminishing as they have to compete with the foreigners. In fact, some companies prefer to hire
foreign workers as they are willing to accept lower pay from the locals especially in the lower
skilled jobs. Consequently, more locals will be jobless and unable to contribute economically to
the country. Furthermore, the burden will be put on the government as social welfare expenses
will be higher.

2.10 Conflict may occur between foreign and local worker due to poor communication
In Malaysia, the issue of communication problems among migrant workers is no longer a
new issue in the construction industry. Since 1980, the government was forced to recruit foreign
labor to work in the country as to overcome the problem of shortage of local labor. Entry of
foreign workers in various fields and sectors, particularly in the construction sector, will create
communication problems between local and foreign workers. Thus causing confusion and
mistakes in presenting such information.
According Loosemore and Andonakis (2007) explains that the existing communication
problems among migrant workers, where it somehow affects any activity involving compliance
with health and safety job. This is very dangerous and should find a solution because it involves
the lives and safety of workers and the people around. Furthermore, research by Shafii et al.
(2009), they say that the existence of communication problems among migrant workers in the
construction industry contributed to the risk of accidents on construction site. This is very
dangerous and should find a solution because it involves the lives and safety of workers and the
people around.
Research by Wah (2000) made in Singapore, he explained that the problem of critical
language in the country also contributed to the accident which occurred in the building where
most of the foreign workers who came from Bangladesh, India and Thailand do not understand
the order presented because they do not understand English or Mandarin. Due to a lack of
understanding of communication, various problems arise such as the mistake to interpret the
instructions, conflict coaching and coordination problems at the construction site.

Chapter 3: ResearchMethodology
3.1 Sampling
For this study, the sampling size is referring to the total sum of population data. The sampling
siza for the study are 100 students of UiTM Campus Alor Gajah, Malacca as a respondent. The
respondent’s course of this study is Diploma in Business Management, Diploma in Accountancy,
Diploma in Mass Communication, Diploma in Art and Design and Diploma in Hotel and
Tourism Management. A questionnaires was distributed at several places in UiTM Campus Alor
Gajah which is at Campus Library, Tun Perak Collage, Tun Hamzah Collage, Tun Putih Collage
and respondent’s faculty. Sampling size of this are the student of UiTM Campus Alor Gajah,
Malacca for Diploma Student.
3.2 Data Collection Method
In order to collect needed information or conducting this research, a questionnaires was using to
make a survey of effect of excessive foreign worker in Malaysia. The questionnaires were
distributed at respondent’s faculty in UiTM, Campus Alor Gajah, Malacca. The questionnaires
were collected immediately after the respondent completed the answer. The respond was rate 100%
and take almost one week to collect and gather the questionnaires.
3.2.1 Primary Data
A questionnaire which is as a primary data were used to make a survey and collect the relevant
information in this study. By using the primary data, the answer is more accurate and consistent,
thus, matching with the objectives of research.

3.2.2 Secondary Data
The relevant information in the questionnaire also have been gained from the internet sources
such as articles, book and magazines. These sources is known as secondary data. All the
information is related to the topic of the study which is “The Effect of Excessive Foreign Worker
in Malaysia Based On Student’s Perception”
3.3 Questionnaire Design
A questionnaire that have been provided to the respondent in UiTM Campus Alor Gajah,
Malacca was fully constructed in English. It is used to obtain the necessary data to answer the
research questions and eventually to achieve research objectives. The questionnaire consists
about 14 questions in order to investigate the Effect of Excessive Foreign Worker in Malaysia
Based on Student Perception. The questionnaire design of this study are divided into two section
which are Section A and Section B.
Section A are required the demographic profile of the respondent which is consists of 4 question.
This section required the respondent’s gender and age. In addition, the respondent also were
required to tick whether they think foreign worker brings positive or negative effect to our
country. Besides that, the respondent aware or not of the exceed immigrant worker in our
country.
In section B, it consists of 10 questions that were designed for the respondent to answer. The
kind of question that have been asking is regarding to the factor that influence the effect of
excessive worker in Malaysia based on student’s perception. It is requiring respondent’s opinion
and they have to tick and choose one of their choice. The question is measured on a scale 1 to 4.
The largest scale, 4 indicates ‘strongly agree’, 3 indicates ‘agree’, 2 indicates ‘disagree’ and the
lowest scale, 1 indicate ‘strongly disagree’.

Chapter 4: Finding of analysis
Section A: Demographic Profile
4.1 Gender
Gender Percentage Frequency
Male 30% 30
Female 70% 70
Total 100% 100
Figure 4.1.1
Figure 4.1.2
Based on the graph above, we can conclude that most of the respondents are female. Maybe
female are more interested to answers about foreign workers.
0
10
20
30
40
50
60
70
80
90
100
Gender
Male Female

4.2 Age
Age Percentage Frequency
17 - 18 18% 18
19-20 76% 76
20 and above 6% 6
Total 100% 100
Figure 4.2.1
Figure 4.2.2
Based on the graph above, respondent age between 19- 20 has the highest amount for answering
this questionnaire.
0
20
40
60
80
100
Age
17-18 19-20 20 and above

4.3 Which effect do you think foreign worker brings to our country?
Effect Percentage Frequency
Positive 29% 29
Negative 71% 71
Total 100% 100
Figure 4.3.1
Figure 4.3.2
Based on the graph above, we can conclude that foreign worker brings a lot of negative effect
rather that positive effect.
0
10
20
30
40
50
60
70
80
90
100
Effect
Positve Negative

4.4 Did we aware of the exceed immigrant worker in our country ?
Awareness Percentage Frequency
Yes 87% 87
No 13% 13
Total 100% 100
Figure 4.4.1
Figure 4.4.2
Based on the graph above, most of the respondents were aware of the exceed of immigrant
worker in our country.
0
10
20
30
40
50
60
70
80
90
100
Awareness
Yes No

Section B:
4.5 Crime rates
Level Percentage Frequency
Strongly Disagree 0% 0
Disagree 11% 11
Agree 46% 46
Strongly Agree 43% 43
Total 100% 100
Figure 4.5.1
Figure 4.5.2
Based on the graph above, most of respondents agree that the present of foreign workers
increasing crimes rate.
0
10
20
30
40
50
60
70
80
90
100
Strongly Disagree Disagree Agree Strongly Agree
Crime rates

4.6 Variety cultures
Disagree 30% 30
Agree 42% 42
Total 100% 100
Figure 4.6.1
Figure 4.6.2
Based on the graph above, most of respondents agree that foreign worker brings variety cultures
to Malaysia.
0
10
20
30
40
50
60
70
80
90
100
Variety Culture

4.7 Productivity
Disagree 28% 28
Agree 51% 51
Total 100% 100
Figure 4.7.1
Figure 4.7.2
Based on the graph above, most of respondents agree that foreign worker helps increase
productivity in many industry.
0
10
20
30
40
50
60
70
80
90
100
Productivity

4.8 Cost of production
Disagree 26% 26
Agree 46% 46
Total 100% 100
Figure 4.8.1
Figure 4.8.2
Based on the graph above, most of respondents agree that foreign worker reduce the costs of
production in labor market.
0
20
40
60
80
100
Strongly Disagree Disagree
Cost of production

4.9 Malaysia economy
Disagree 41% 41
Agree 43% 43
Strongly Agree 8% 8
Total 100% 100
Figure 4.9
.
Figure 4.9.2
Based on the graph above, most of the respondents agree that foreign workers helps increase
Malaysia economic.
0
10
20
30
40
50
60
70
80
90
100
Malaysian Economy

4.10 Health diseases
Disagree 12% 12
Agree 42% 42
Total 100% 100
Figure 4.10.1
Figure 4.10.2
0
10
20
30
40
50
60
70
80
90
100
Health Disease

Based on the graph above, most of respondents agree that foreign worker reduce the costs of
production in labor market.
4.11 Job opportunity
Disagree 12% 12
Agree 21% 21
Total 100% 100
Figure 4.11.1
Figure 4.11.2
0
10
20
30
40
50
60
70
80
90
100
Job opportunity

Based on the graph above, most of respondents strongly agree that excessive foreign worker
makes job opportunity to local people become less.
4.12 Negative culture
Disagree 18% 18
Agree 48% 48
Total 100% 100
Figure 4.12.1
Figure 4.12.2
0
10
20
30
40
50
60
70
80
90
100
Agree Strongly Agree
Negative culture

Based on the graph above, most of respondents agree that foreign worker brings negative culture
to society.(social, lifestyle and etc)
4.13 Technology improvement
Disagree 29% 29
Agree 53% 53
Strongly Agree 5% 5
Total 100% 100
Figure 4.13.1
Figure 4.13.2
0
10
20
30
40
50
60
70
80
90
100
Technology Improvement

Based on the graph above, most of respondents agree that foreign workers can makes our
technology further ahead with their skills and knowledge.
4.14 Conflict of communication
Disagree 8% 8
Agree 40% 40
Total 100% 100
Figure 4.14.1
Figure 4.14.2
0
10
20
30
40
50
60
70
80
90
100
Conflict of Communication

Based on the graph above, most of respondents strongly agree that conflict may occur between
foreign and local worker due to poor communication.
Chapter 5: Conclusion
In summary we can conclude that there are four strong effect based on UiTM student’s
perception. The strongest effect was the conflict of communication between foreign worker and
local people with 90%. Our recommendation it is compulsory for them to learn our language
which is Bahasa Malaysia. Second, increase in crime rates among local people with 89%. The
best way is the immigration need to increase our national regulation. Third, is job opportunity
with 86%. We suggest that all the foreign worker need to sign an agreement with 2 years contract
only. Last but not least is health disease with 81%. The way to overcome is foreign worker need
to do the medical check-up every month.
Besides that, in moderate level there are six effects. The first one is negative culture with
79% and the way to overcome it is the employer must make counseling session to misbehave
foreign worker. Second is increase in productivity with 67% which is positive effect that gave
some of advantage to our country. Third, is effect in cost production with 62% which is also
positive effect. Forth is improvement in technology with 58% that brings benefits to Malaysia
economy. Fifth is variety cultures with 53%. Although foreign worker may bring negative
culture to Malaysia, they also might create variety of culture in Malaysia. Lastly is increase in
economy with 51%. At the same time, we need to train the foreign worker with communication
skill and labor skill in order to improve our economy in future.

References
1. Ministry of Human Resources of Malaysia, Immigration In Malaysia: assessment of its
economics effect, and a review of the policy and system. Immigrationinmalaysia.pdf
2.

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