ALLOWING refugees and asylum seekers the right to work in Malaysia will give them a dignified life with greater self-reliance, United Nations High Commissioner for Refugees (UNHCR) Malaysia spokesman Yante Ismail said.

She said since there are more than 100,000 refugees in Malaysia, the group presents a willing source of labour who can contribute to the country’s economy by way of tax.

Legal work will also ensure that employers do not take advantage of the vulnerable group, she added.

She said a scheme to allow refugees to work lawfully would provide a source of willing labour to support and contribute to the Malaysian economy.

“Access to legal work would transform the quality and protection of refugees’ lives in terms of enhancing self-reliance,” she told The Malaysian Insight.

“Greater self-reliance among refugee communities would lead to better health and education and a significantly reduced burden on the host state. 

“At the same time, it would provide a stronger basis for refugees to contemplate their future options, including returning to their home countries with transferable skills to start their new lives when that is possible.”

According to the World Bank’s 2015 Malaysia Economic Monitor, allowing refugees to work legally will create more jobs and increase wages for Malaysians, while also increasing the country’s GDP.

A 2019 IDEAS report entitled the “Economic Impact of Granting Refugees in Malaysia the Right to Work” found that refugees could contribute over RM3 billion annually to the GDP by 2024 and help create 4,000 jobs for Malaysians.

“The cost of hosting refugees would thereby be offset by positive contributions and would lead to job creations that are more skills-intensive, further benefiting and helping high-skilled Malaysian employees.         

“It is a win-win for Malaysia, for its national interest and economy, and for refugees who live here temporarily,” Yante said.

Last week, Umno vice-president Mohamed Khaled Nordin suggested Putrajaya allow refugees to work in the country after registering with the UNHCR.

This, he said, will cut the need for unskilled foreign labour.

Refugees are not allowed to work in Malaysia. They are typically temporarily placed here, before being relocated to a third country.

Last month, Human Resources Minister M. Saravanan said Putrajaya was working on a guideline on permission for refugees to work in Malaysia.

Saravanan said his ministry will study the suitable sectors for refugees and ensure that permission for them to work will not lead to competition with Malaysians for jobs.

However, the minister did not give a timeline as to when the guideline would be introduced.

Overcoming exploitation 

UNHCR said allowing refugees to work will ensure that they are not taken advantage of by unscrupulous employers.

“It is common for refugees to face exploitative work conditions in the informal sector with no contractual agreement, where they often face working in difficult and dangerous conditions, often with low pay, and where they are at risk of termination on unfair terms.

“If refugees are able to access work legally, they would enjoy the same basic work rights and workplace protections as any other foreign worker, thus addressing issues such as minimum wage, work hours, workplace safety, and exploitation by employers,” Yante said.

This will also reduce the cost of Malaysia sourcing for unskilled foreign labourers, she said, adding that approximately 73% of refugees registered with UNHCR are of working age.

UNHCR data gathered from refugee communities showed that those who were able to access informal employment largely work in agriculture, construction, food, retail, and manufacturing sectors.

Addressing concerns that allowing refugees to work legally might encourage more of them to come to Malaysia, Yante said most who come will eventually return when it is safe or relocated to a third country.
“The number of refugees resettled from Malaysia have increased significantly, as a recognition of Malaysia’s contribution in hosting refugees as part of shared global responsibilities. 

“From 2008 to March 2022, over 90,625 refugees have been resettled from Malaysia to third countries,” she said.

According to UNHCR, as of end-February 2022, there are 181,800 refugees and asylum seekers registered with UNHCR in Malaysia.

UNHCR said 86% of asylum seekers are from Myanmar, while the remaining are 25,990 refugees and asylum seekers from 50 countries fleeing war and persecution, including from Pakistan, Yemen, Syria, Somalia, Afghanistan and others.

The UNHCR said 67% of refugees and asylum seekers are men. – April 28, 2022.