Impact Of Foreign Workers On Malaysian Economy Pdf

Many of our economic sectors are excessively dependent on foreign workers.

Impact of foreign workers on malaysian economy pdf. General equilibrium model and concludes that foreign workers exert a negative impact on the local unskilled workers by widening the wage gap. Recent study by choy 2004 for the korean economy shows that the positive impact of immigration critically depends on the price flexibility in the economy and there are larger welfare. In an interview with malaysian digest malaysian employers federation mef executive director datuk shamsuddin bardan pic said there are currently 2 8 to 2 9 million migrant workers in malaysia. The growing presence of foreign workers in malaysia can be explained by excess demand for labour combine with rapid economic growth as well as the cheaper cost of foreign workers.

Foreign labour especially the blue collar workers contributes quite significantly to the national economy as they contribute about 10. Manufacturing services and construction for the period of 1990 2010. Foreign workers in malaysia. The aims of this research are to identify those negative impacts induced by foreign workers in the malaysian construction market and to determine strategies in minimizing these negative impacts.

A comparison of the estimated effects of foreign workers across these various sets of industries indicates that at least for the malaysian case positive productivity effects from the use of low skilled foreign workers are particularly pronounced in export oriented modern industries characterized by assembly intensive production processes. Dependence on foreign workers and the negative impacts induced have become a serious social problem. The foreign workers know that malaysia is facing a shortage of cheap labour and they would demand higher wage while at the same time would dilly dally on their job moral hazard. Labour market and firm level analysis ximena del carpio çaglar ozden mauro testaverde mohamed marouani bjorn nilsson and mathis wagner 47 the impact of foreign workers on labour productivity in malaysian manufacturing sector zaleha mohd noraini isa rusmawati said and suhaila abd jalil 73.

This paper is to examine the impact of foreign labour on malaysian economic growth using panel data from three sectors.