Why Foreign Workers Are Important to Malaysia’s Economy
Foreign workers of various skill levels in Malaysia generate much revenue to the Malaysian economy. Their economic contribution should not remain unmentioned when the economic growth of Malaysia is discussed. Foreign workers in Malaysia are generally concentrated in several states of the country. Most of the immigrants to Malaysia choose to live and work in Sabah. Among the primary reasons why Sabah has been able to attract many foreign workers is its proximity to other Southeast Asian countries such as Indonesia and the Philippines. The cultural diversity of Sabah as well as the prominent role of agriculture in the state have also caused many foreign workers to opt to find work within the area. Other areas of Malaysia in which a large number of foreign workers live and work are Selangor and Johor. According to the latest statistics, the states of Sabah, Selangor, and Johor combine to contain nearly two-thirds of all foreign workers in Malaysia. Other areas of Malaysia which are home to many foreigners include Kuala Lumpur, Sarawak, Pahang, and Penang.
There are several reasons why foreign workers are essential to the Malaysian economy. The most important of these is that foreign workers provide labor whenever and wherever it is needed. Foreign workers contribute to the Malaysian economy by providing either skilled or unskilled labor. Labor is much required in the manufacturing industry of Malaysia in order to ensure its continuity and growth. Many foreign workers are also employed in the agricultural sector of Malaysia. Other industries of Malaysia which also employ relatively high numbers of foreigners are the construction industry, the wholesale retail industry, and the accommodation industry.
The contributions of foreign workers also drive Malaysia’s economic growth. Through the contributions of these foreigners, particularly in the manufacturing and agricultural sectors as well as other sectors that do not necessarily require skilled labor, the country is able to produce much as well as export its products to other markets. As a result, the country’s economy is able to continue growing. Therefore, foreign workers are of great importance, not only to their employers but also towards the economic growth of the entire nation.
How a Malaysian Business Owner Might Hire Foreign Workers
Employers in Malaysia should ensure that their potential foreign employees have visas and work permits to enable them to enter and work in the country. Foreign workers are expected to acquire a work visa before starting work in the country. Foreign workers are also expected to comply with Malaysian laws to enable them obtain the required visa and consequently work permits to enable them to secure jobs in Malaysia. Malaysian employers are to sponsor their employees as well as secure their working rights to ensure that they easily obtain access into the country via visa. However, securing these working rights might pose to be one of the primary challenges for companies which have just begun operating or have only recently entered the Malaysian market. Nevertheless, such companies or employers who might be interested in hiring foreign workers should consider contacting professional firms who will be of assistance in acquiring the services of the foreign workers.
One of the easiest ways to hire a foreign worker into the Malaysian workforce is to own a company. Among the easiest sectors in Malaysia in which foreigners could be hired are the manufacturing, construction, agriculture, and services sectors. Potential employers of foreigners in Malaysia should be aware that the employment of foreign workers is subject to a quota requirement set by the Ministry of Home Affairs.
Should you be interested in owning a company based in Malaysia yourself, we at Paul Hype Page & Co are always willing to serve your needs. We will work with you to ensure that everything you might require related to incorporation in Malaysia is satisfied. We will also ensure that your company’s incorporation is completed in a legal and legitimate manner.