THE National Report: Malaysia 2020 is one of 10 national Asean member state reports produced to feed into a regional Comparative Study on Laws and Policies in the Management of Migrant Workers in Asean.

The regional study offers a comprehensive analysis on how Asean member states have dealt with the movement of migrant workers into their labour markets.

It is a must-read for the relevant ministers.

According to the report, accurate and current statistics of “migrant workers” – a term not commonly used for non-Malaysian nationals working in the country which uses the term “foreign workers” – are difficult to come by, especially for unskilled labour, which again are often divided into two categories – that is, legal and illegal (or documented and undocumented).

Documented unskilled labour numbers are just under two million, or some 14% of a workforce of 15.6 million workers as of January 2020. The total number of foreign unskilled labour is widely disputed.

Counting the numbers is a needlessly persisting conundrum. (Lee Hwok-Aun and Khor Yu Leng, “Counting Migrant Workers in Malaysia: A Needlessly Persisting Conundrum” (2018) 25 Perspective 1)

The report cited Murray Hunter, who wrote in 2019 that “according to unofficial estimates, up to six million foreign workers are in Malaysia, or 18.6% of the country’s 32.6 million population. This… is made up of 2.27 million legally working and another 2.5 to 3.37 million illegal foreign workers. Foreign workers represent somewhere between 31-40% of the total Malaysian workforce of 15.3 million, employed primarily in what is called “3D” (dirty, dangerous, and difficult) jobs in the plantation, agriculture, construction, manufacturing, and service sectors.”

Hunter added:

“Foreign worker recruitment, processing, and placement is a massive business, worth more than RM2 billion (US$478 million) annually to manpower and private employment agencies. 

“The costs of the extension process, extra charges made by private employment agencies and medical screening issues often encourage foreign workers once in Malaysia to work illegally. 

“There is a ready market in counterfeit foreign worker cards, which would save the foreign worker RM4,500-5,000 per year in charges and immigration levies. There is an underground network in manpower agencies handling illegal workers.

“The manpower business has no code of conduct, an industry that has attracted both domestic criminal elements and high-ranking government and political figures due to the lucrative profits and low risks.” 

According to the report also, policies relating to the employment of foreigners “are made by the Cabinet Committee on Foreign Workers and Illegal immigrants; a committee consisting of a number of different ministries with an interest in the subject. The policies made by this committee are not published, [only] infrequent press releases. An independent Committee on Foreign Workers was established in August 2019, but its report also was not made public.” 

Mind you, the above is just the Introduction in the report!

On abuse of foreign workers, the report reads as follows:

“Stories and anecdotes of abuse of foreign workers in Malaysia are legion. Although there are no published official statistics, evidence of abuse from reputable sources, mostly non-government organisations abound.

“Some of the worst cases of abuse are those of domestic helpers who are often invisible to persons outside the employer’s home and, by virtue of their isolation, are often unable to get assistance when facing problems with their treatment.

“Further, inspection of homes by the Labour Department is a herculean task, given the numbers of these employees and the small number of labour inspectors in the Department of Labour. When a particularly awful case of abuse of a domestic helper comes to light in the media, the outcry is immediate and loud but after a while, the on-going issue disappears for a while until the next shocking case is publicised.”

The most common examples of abuse are:

• Withholding of employees’ passports by the employer, with employers having a fear, justified by the reality of the number of undocumented workers in the country who entered with valid passports and employment permits, but who absconded and disappeared into the huge black hole of those persons known in Malaysia as “illegal workers”. This despite section 12 of the Passport Act 1966, provides that any person who without lawful authority has in his possession any passport or international travel document issued for the use of some person other than himself shall be guilty of an offence for which the penalty is a fine of up to RM10,000 or a jail sentence of up to five years, or both.

• Failure to pay wages regularly, or at the rate agreed in the employee’s contract of employment; failure to pay statutory premium rates for working overtime, working on public holidays and on rest days.

• Unwarranted wage deductions such as for tardiness, and poor-quality work or high rate of rejects.

• No increases in wages during the contract period, even though the cost of living has increased.

• Long working hours on a regular basis 6. Unsanitary and crowded living accommodation provided by the employer.

• Threats issued that certain actions will not be tolerated and if discovered will lead to the termination of employment, cancellation of work permits and immediate repatriation to the employees’ country of origin. Actions which may cause the displeasure of the employer include joining a trade union, reporting an industrial accident, taking sick leave, or any disciplinary problems.

The challenges facing Malaysia in relation to the management of foreign labour are long-standing. One of the many challenges “is the lack of written policies relating to various facets of the management of the intake of foreign workers”.

Apparently, there are a number of internal policies used within the relevant government departments and agencies but these are not made known to the stakeholders, specifically the employers who wish to recruit foreign workers.

According to the report, this dearth of information “leads to suspicion amongst these parties that special privileges are available to some and not others”.

The report clearly calls for the government to clarify its policies and practices relating to foreign workers. This has to be the work for the year, other than on the economy.

The report is therefore a must-read for the unity government. – January 7, 2024.

* Hafiz Hassan reads The Malaysian Insight.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.