MEF calls for stricter enforcement of foreign worker recruitment in Malaysia

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Stricter enforcement of foreign worker recruitment

Highlights

The MEF is calling for stricter enforcement and compliance checks on foreign worker recruitment to prioritize local workers in certain sectors.
The MEF warned that blanket restrictions on foreign workers could lead to labor shortages, higher operating costs and disruptions to essential services in Malaysia.
The MEF highlighted the risks of excessive reliance on foreign workers without developing local talent, which could expose Malaysia to labor disruptions and higher recruitment costs.

This article was translated from the original. Read the original version by our correspondent here.

Proposed enforcement measures and recruitment requirements

As reported by The Edge Malaysia, the MEF expressed concern in a statement on Wednesday over reports of foreign workers being employed as cashiers, retail assistants, service attendants and food service workers, raising questions about whether existing recruitment policies are being properly implemented and enforced.

The federation stressed that Malaysians must be given first priority for vacancies. Employers should also make genuine efforts to recruit, train and retain local workers before turning to foreign labor.

According to the MEF, these efforts should include offering competitive and sustainable wages, improving working conditions, providing career progression paths and investing in skills development. At the same time, it acknowledged that foreign workers remain necessary for 3D jobs—that is, dirty, dangerous and difficult work—as well as other positions that are difficult for local workers to fill and retain, even after reasonable efforts have been made.

The MEF also proposed stricter compliance checks, firm action against those who misuse recruitment approvals, and stronger controls requiring employers to demonstrate genuine difficulty in recruiting Malaysians before foreign worker applications are approved. It also called for better coordination and data sharing among ministries and enforcement agencies, as well as regular reviews of labor shortages to ensure recruitment approvals reflect actual demand.

Impact on the labor market and operating costs

The MEF has urged the government to consider gradually extending restrictions on foreign workers to selected occupations where local recruitment is viable. However, the federation warned that blanket restrictions could lead to labor shortages, higher operating costs and disruptions to essential services.

Datuk Dr Syed Hussain Syed Husman, the MEF's senior adviser for government, media and international engagement, said foreign workers play an important role in sectors facing genuine labor shortages, but should not replace efforts to develop the local workforce. He said the government must take firm action against employers, recruitment agents or others who misuse foreign worker approvals, circumvent sector restrictions or place foreign workers in jobs outside those for which they have been authorized.

He also warned that excessive reliance on imported labor without sufficient investment in local talent could expose Malaysia to labor supply disruptions, rising recruitment costs and structural weaknesses in productivity. The ultimate goal, he said, is not simply to limit the number of foreign workers entering Malaysia, but to build a stronger Malaysian workforce to support the country's long-term economic sustainability.

In our earlier coverage of investment criteria for quality investments, we emphasized that investments should not be assessed solely by the capital they bring in, but also by the quality of the jobs they create—including fair wages, safe workplaces and flexible work arrangements, particularly to increase women's participation. The article also highlighted how greater female labor force participation can strengthen the country's productive capacity, but remains constrained by factors such as inadequate childcare support.

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