Foreign worker employment in Malaysia's critical sectors & sub-sectors exceeds projected numbers: Ministries

Manufacturing and services were the two sectors which saw the highest difference in projected numbers vs. actual employment.

As of 9 October 2023, there were 667,418 foreign workers employed in Malaysia's critical sectors/sub-sectors, higher than the projected numbers shared in Q1 of the year (518,000). 

Minister of Home Affairs Datuk Seri Saifuddin Nasution Ismail shared this in a statement on Wednesday (18 October 2023), following a joint meeting with the Ministry of Human Resources on the management of foreign workers in the country. The meeting noted that the Foreign Worker Employment Relaxation Plan (PKPPA) and the Workforce Recalibration Programme (RTK) 2.0 has been introduced earlier on, in order to meet the needs of five critical sectors or sub-sectors: manufacturing, construction, plantations, agriculture, and services (restaurants), that contribute a 1% increase in the gross domestic product.

According to the Minister, the details of the projection and entry of foreign workers through the implementation of PKPPA and RTK 2.0 are as follows:

In line with this, Minister Saifuddin said the projected number of foreign workers in Malaysia has now reached 2,730,153, exceeding the target previously set by the Ministry of Economy in the 12^th Malaysia Plan. Therefore, the government's focus at the moment will be on managing the entry of foreign workers based on the approved quota.

It should be noted that while the RTK2.0 registration period is slated to end on 31 December 2023, the verification process will continue until the end of March 2024. "Employers are welcome to join the RTK 2.0 before registration ends," the minister said.

He added: "The relaxation given by the government through PKPPA and RTK 2.0 is still subject to compliance with labour and immigration laws. Today's meeting found that the level of employer compliance is still low based on the findings from inspections and inspectorates that have been implemented.

"In fact, it was found that employers in the service sector are prone to non-compliance with the law and are classified as high risk."

Minister Saifuddin urged all employers to pay attention to the aspect of compliance with the relevant conditions and labour laws that the government has simplified through the PKPPA, affirming that the government "will not hesitate to take strict action against employers who fail to comply with the laws in force."

Quota of 2,000 approved for employment of foreign workers in theme parks

 Apart from the above, the meeting also looked into a proposal by the Ministry of Tourism, Arts and Culture to open up a sub-sector, i.e., theme parks, for the purpose of employing foreign workers. This came following the "sudden increase" in the number of foreign and domestic tourists post-COVID-19, it was noted.

In response to this, an approval was given at the meeting for the sub-sector to open up, specifically to employ foreign workers in the roles of 'recreational theme park operator assistant' and 'water theme park caretaker assistant'.

A quota of 2,000 was set, for the years 2024 and 2025.

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