FACTORS THAT MOTIVATE FOREIGN WORKERS MIGRATE TO MALAYSIA

Malaysia is one of the developed countries in the world. People with different races
live in peace and harmony, Malaysia is seen as a country that is safe to live in it. Thanks to
our leader who makes this all happens. This attracts not only tourist but also foreign worker.
We can see many foreigners from around the world have come to work in Malaysia, either
legally or illegally. They prefer Malaysia in the opportunity in making money because of its
stability in politics and safety.

There are few reasons why Malaysia preferred by the foreign workers, there are;

1. Government Policy essential for economic development

In achieving develop country, Malaysia need high skilled manpower in so the

country needs the highly skilled educated expatriates in the particular field from the other
developed countries. Their arrival here is at the request of a company on its own in
addition to the invitation by the government to further enhance travel as well as the
development of an industry.

In addition to using their expertise for the development of the country, the
government also hoped that they can guide and transferring their skills and knowledge to
Malaysians worker for the country's development in the future. 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 (Siti Nabilah,
2010). In the long term condition, this situation finally can expand the Malaysia economic
and not over depends on other country.

2. Opportunities on local rejection

Recently most of the Malaysia likes to choose jobs. They are more interested in
administration. Azizah Kassim (1993) said that there is tendency among Malaysian to
shun manual jobs which they consider lowly-paid, dirty, demeaning and often dangerous
without prospect for promotions. Shamsuddin Bardin, executive director of the Malaysian
Employers Federation said that the foreign workers do the three D jobs that Malaysian
doesnt want - dirty, dangerous and difficult.

They are not interested to work in low-class sector such as manufacturing,

plantations and construction. Report by the Malaysian Trades Union Congress (2008)
 stated that locals are not keen to work as domestic helpers, restaurant waiters and
cleaners with cleaning contractors, due to the long hours and low wages, further
supporting the argument that locals simply do not want to get dirty, dangerous and
difficult jobs. Che Hashim (2009) noted that the manufacturing sector most abounded
accept unskilled foreign workers, followed by the plantation sector. The table below
shows a breakdown of the number of foreign workers according to employment sectors.

Sector 2006 2007 2008 2009 2010

No. % No. % No. % No. % No. %
Manufacturing 628,576 33 766,451 37 737,523 35 355,710 29 539,579 36
Plantation 343,373 18 343,373 17 361,977 17 205,333 17 246,284 16
Construction 272,730 14 298,422 14 285,845 14 204,237 17 187,743 12
Services 201,203 11 201,203 10 215,149 10 133,597 11 144,631 10
Agriculture 162,338 8 162,338 8 220,528 11 116,324 9 150,823 10
Services 305,393 16 293,771 14 264,591 13 206,863 17 247,051 16
10 2,065,55
Total 1,913,613 100 2,085,613 100 1,222,064 100 1,516111 100
0 8

Table : Distribution of foreign labourers (Department of Statistics Malaysia, 2010).

According to the table; we can see that the manufacturing and plantation sectors
contribute the largest number of foreign workers compared to other sectors. According to
the Economic Report 2010/2011 by the Finance Ministry, there were 1.8 million
registered foreign workers in Malaysia, 38.2% were employed in the manufacturing
sector, 16% in the construction and 14.2% in the plantation sectors.

Youngster and the unemployed tend to avoid applying jobs in those sectors. They
consider that work in those sectors was so exhausted and the wages that they will have
earned are not commensurate with the work they have to do. Aminudin & Usha (2008),
finds that the refusal of the local community to work in the plantation sector as the job
uninteresting, dirty and not on par with their level of education.

Undoubtedly there are Malaysians who are working in the fields, but their
numbers are relatively small compared with foreign labours. Chances are they've had to
work in the field is because they does not have opportunities in other jobs that they like
and they have to earn a living for themselves and their families

3. The foreign workers attitude

 Some of the reasons why most of the foreigners work in Malaysia are because of the
attitude of employers who prefer hiring foreigners compared to Malaysians. Wages for
foreign workers are cheaper than Malaysian worker as added other benefit according to
Labour Law. According to MTUC secretary-general Abdul Halim Mansor, he said that
Malaysian employers generally like to hire unskilled foreign labour because they are
cheaper (The Star, 26 Feb 2013)

The attitudes of the foreign workers more disciplined also attract more employers
to use their services. Foreign workers willing to work overtime as their target working
outside from their native land is to accumulate money to be send to family. Aminudin &
Usha (2008) stated, it is found that these employers are more incline in hiring foreigners
due to discipline, productivity, working hours, obeying orders, wages and difficulty in
securing locals in certain sectors.

4. Better jobs and a higher pay

Most of the foreigners who came to work in Malaysia are from the lower income
groups in their home country. They came here is to look for work as a result of
unemployment problems they face in their country. Although their pay rate are lower, but
when converted into the currency of their country of origin, the value of the money they
earn relatively high and they can accommodate their family lives there.

According Che Hashim (2009), those who come to work in this country tend not
to have a job in their home country or if there are even jobs at their country when the pay
are lower than they received in Malaysia. Although there is no empirical evidence to
support the statement, but is in accordance with the findings made by a leading
economist S.M. Todaro. Todaro said that the main reason for labour was moved from the
place of origin to the point is the difference rate of pay. Wage rates in a direction are
higher than the rate of pay in the place of origin. The living standards and wage rates in
the home country are the most vital factors influencing local workers to migrate to other
developed countries in order to earn higher wages (Wells, 1996).

PROBLEMS ENCOUNTERED AS A RESULT OF THE DEPENDENCE ON

FOREIGN WORKERS
 The dependence on foreign workers brings positive and negative effects to the country
in particular. The arrival of foreign workers to be recognized a lot of benefit to the
development of our country. Their presence could solve the problem of shortage of
manpower faced in some occupational sectors. They also have helped the government to
cover the shortage of skilled manpower by their knowledge and skills.

In terms of social perspective, negative effects seen greatly influenced with the
increasing variety of negative issues such as the increase in the crime rate. In terms of the
country's economy on the other hand, if we too depending to foreign workers, Malaysia face
high unemployment among its people, this is because with the attitude of employers prefer to
hire foreign workers as compared with local workers. Over-dependence on foreign workers
will result in an outflow of currency, decline in productivity performance, and compromise
social balance and the economy (Hamzah, Chen, Lincoln & Shu, 2012). If the arrival of
foreign workers is not controlled by the government, it will cause an imbalance between local
workers and foreign workers.

1. Quantity more than quality.

Most of the foreign workers just want to find the extra money where the employer
will usually pay more wages if the production exceeds the quota given. This caused most
goods produced by a factory is not up to the standards. Malaysian Trades Union Congress
said that unskilled foreign labour in our workforce could be effecting negatively to the
productivity levels.

Eugene Tan (2010) is a law Professor at the Singapore Management University

and explains the panels rationale,

"I think there is a concern now as highlighted by the economic strategies

committee, over dependence on cheap foreign workers has resulted on a lowering of
productivity within Singapore's work force. The government will try and re calibrate the
supply and try to manage the business sectors demand for foreign workers. So long as
foreign workers are easily available the economic thinking is that companies will be less
incentivised to come up with innovative ways of going about their business, of coming up

with more productive ways of doing business.

 "When Singaporean companies hire cheap foreign workers the increase in output
is not due to better manufacturing processes, a better way of going about doing business
it is really more about perspiration rather than inspiration. If companies can automate, if
companies can bring in better skilled workers then we could see output increasing not
just incrementally but the hope is that output would then increase perhaps double or three
fold."

2. Foreign workers will be more in demand.

In 2009, Malaysia has realized by freezing delivery of foreign workers to Malaysia

by Indonesia. They stated that their citizens working in the country, especially from non-
professionals have been treated badly and treated unfair. They also stated that the salaries
received by the people they are not commensurate with the burden of work that have to
they do. Therefore, the Indonesian government has taken drastic action to freeze the
delivery of their nationals to work here. They claimed that their people, especially those
working as domestic servants paid with a minimum salary of RM800 for one task only.
This claim does not make sense and see bias because it's more profitable to foreign maid
compared to the employers. Salary rates deemed claimed is too lucrative for the maid
does not have to pay rent, bills and daily expenses because all of that has been borne by
their employers.

Manja Ismail said, although the conditions stated Director General of Labor
Placement Construction Division, Ministry of Labour and Transmigrasi Indonesia, Dr
Reyna Usman, shall be fair, but it doesn't make sense, it has been reported as a result of
the negotiations Joint Special Task Force (JTF) between the Government of Indonesia
and Malaysia. The results of the consultation, among others, the Indonesian maid
delivery setting will follow their respective skills in four specific areas, cooking,
parenting a baby, taking care of elderly people and managing the house. (Berita Harian
Online, 19 March 2012)

This situation has forced the government to implement the minimum wage to
employees who work in the private sector, including foreign workers. The Prime
Minister, Datuk Seri Najib Razak announced a minimum wage for the private sector on
30 April 2012 and gazetted on July 16 2012. Order of the minimum wage in force on
January 1, 2013 and the rate will be reviewed every two years. Enforcement of the
implementation of the mandatory minimum wage is the minimum wage workers with
private Peninsula set 900 and 800 in Sabah, Sarawak and Labuan. In addition to benefit
the local workforce in the country, the implementation of the minimum wage will also be
able to reduce the country's dependency on foreign energy. Minister of Human
Resources, Datuk Seri Dr S Subramaniam said this is because the high minimum wage
rates also mean increasing cost of foreign recruitment by employers because they had to
pay levies and other charges.

"Such a situation directly will force employers to reduce their foreign staff and open
public employment to local workers," (Sinar Harian, 04 May 2012)
References

Siti Nabilah Mohd Aminuddin (2010) The Effects Of Foreign Workers To The
Malaysians Economy. Retrieve on 14 March 2013, from
http://noteandmemo.blogspot.com/2010/08/effects-of-foreign-workers-to.html
Shamsuddin Bardin, Foreign Workers Unwelcome In Malaysia. Retrieve on 20 March
2013 from http://www.asiaecon.org/special_articles/read_sp/12488
Ramesh Kumar Moona Haji Mohamed, Charles Ramendran SPR, Peter Yacob (2012).
International Journal of Academic Research in Business and Social Sciences. The Impact of
Employment of Foreign Workers: Local Employability and Trade Union Roles in Malaysia,
10(2), 530-541. Retrieve on 23 April 2013 from http://www.hrmars.com/admin/pics/1252.pdf
Aminudin Mokhtar, Usha a/p Thamotharan (2008), Persidangan Kebangsaan
Ekonomi Malaysia ke III (PERKEM III), Daya Tahan Ekonomi Negara: Dasar dan Strategi
Pengukuhan. Pekerja Asing Di Malaysia: Faktor-Faktor Yang Mendorong Majikan
Mengambil Pekerja Asing, JILID 1 (2008) 42 48
Setiausaha Majlis Perundingan Gaji Negara (2013), KENYATAAN AKHBAR URUS
SETIA MAJLIS PERUNDINGAN GAJI NEGARA PUTRAJAYA. PELAKSANAAN GAJI
MINIMUM. Retrieve on 28 April 2013 from
http://www.mohr.gov.my/docz/KENYATAAN_AKHBAR_GAJI_MINIMUM_19313.pdf
Sinar Harian (04 May 2012). Gaji Minimum Elak Guna Buruh Asing. Retrieve on 13
April 2013 from http://www.mohr.gov.my/index.php/ms/archives/92-archive-news/235-gaji-
minimum-elak-guna-buruh-asing
Manja Ismail (2012), Belajar Hidup Tanpa Khidmat Warga Asing. Retrieve on 01
April 2013 from
http://www.bharian.com.my/bharian/articles/Belajarhiduptanpakhidmatwargaasing/Article

Eugene Tan (2010), Is the foreign workers issue economic or social?

Retrieve on 05 April 2013 from
(http://entertainment.xin.msn.com/en/radio/938live/calocalnews.aspx?cp-
documentid=3956208)