FOREIGN WORKERS IMPACT TO NATIONAL SECURITY

INTRODUCTION

The presence of foreign workers had a big impact, especially on the growth of

the national economy. Foreign workers contributions are not a problem, but the

Malaysian government now views their business as a danger to impact the national

security. In response, the government has implemented a number of regulations to

limit the influx of foreign wokers. However, these regulations are being applied

erratically, and they haven't yet succeeded in successfully reducing their inflow. As a

result, the immigration of foreign workers has rapidly expanded by over two million,

making up roughly 23 percent of Malaysia's total labour force. Most of them are from

Indonesia, the Philippines, Bangladesh, India, Pakistan and Rohingya. Repercussions

on national security in Malaysia's economy, while the industrial sector receives the

majority of financial gains. In addition, Malaysia's industrial sector serves as the

finance industry's principal hub for liaising with the sectors of construction, real

estate, and industrial, consumer, and industrial products and services. Malaysia is

currently relocating its foreign workforce. Foreign workers has helped Malaysia with

its labour shortage issues.

However, the influx of foreign workers, particularly those from a single

nation, raises a number of significant difficulties and has an impact on local

communities in terms of the economy, society, and politics. In order to reduce the

negative consequences by hiring foreign wokers in Malaysia's construction industry, it

is useful to identify the demands and adverse effects. Foreign workers contributed to

1
the reduction of significant labour market imbalances in the construction sector during

periods of economic expansion and modernization. Even if we are hiring foreign

workers to work in Malaysia's construction industry has some favourable short term

effects, most people tend to think that it will have negative long term effects on

society. Since, it is far less expensive to perform labor intensive jobs using an

outdated technology, the widespread employment of semi skilled and unskilled

foreign workers will stifle the adoption of new technologies within businesses.

Figure 1: Immigrant hotspot location at Kuala Lumpur

However, foreign workers is essential in some industries, like construction,

agriculture, and low-end services, where there aren't many local labourers employed.

As a result, many industries need foreign workers to survive. However, as shown by

recent analysis, the presence of foreign workers is also likely to have significant

detrimental consequences on the local economy. Although, there is no systematic

strategy addressing the hiring and placement of foreign workers, the Malaysian

2
government has relied on them since the 1980s. However, the signing of the Medan

Agreement with the nations that served as the main sources of labour in 1984 came

after the legal employment of foreign employees began in 1981. Due to substantial in

migration, Malaysia is a multi ethnic nation. 28 million Malaysians now have many

jobs thanks to the government's discernible economic progress, making up a

workforce of 11.61 million people. Including illegal employees, foreign workers

make up about 20% (2.2 million) of the workforce in Malaysia. There are 2.2 million

more undocumented foreign employees. The recent surge of foreign workers has

substantial problems and important ramifications for the country, even though

Malaysia has relied on them to continue its economic growth. The impact of social

and political issues would be seen in other areas thanks to the foreign employees.

IMPACT OF ECONOMIC GROWTH TO THE NASIONAL SECURYTY

The outcome of the labour market, productivity, and capital intensity will

probably all suffer as a result of the flood of foreign employees. Foreign employees

often have a favourable impact on productivity, particularly when it comes to

manufacturing and building activities in an industrial area. Since it is far less

expensive to perform labor-intensive jobs using an outdated technology, the

widespread employment of semi-skilled and unskilled foreign labour will stifle the

adoption of new technologies within businesses. However, as few local individuals

choose to engage in these fields, foreign labour is essential in some industries,

primarily construction, plantation, and low-end services. As a result, many industries

need foreign labour to survive. However, as shown by recent studies, the presence of

foreign labour is also likely to have significant detrimental consequences on the local

3
economy. The conservative estimate of Malaysia's economic growth for 2014,

according to the Central Bank of Malaysia Annual Report 2013 (Central Bank 2013),

is 4.5 percent to 5.5 percent, as opposed to the earlier estimate of 5 percent to 5.5

percent made by the Malaysian federal government. Due to expected dangers from the

global economy and other outside variables, such as the significant reliance on foreign

labour, the conservative growth estimate was reduced. Due to the unskilled and less

productive immigrant labour, economic sectors that heavily rely on it, such as

agriculture, mining, and construction, may experience slower growth. By steadily

raising productivity and production, the influx of foreign labour subsequently aids the

host economy in maintaining growth.

However, research also suggests that using foreign labour may have a number

of drawbacks. Malaysia primarily depends on foreign labour, especially for low-end

industries like agriculture and unofficial trade. Foreign workers are frequently

employed in construction, on plantations, and in low-end service jobs like those of

housemaids, security guards, and petrol station attendants. About 2.0 million foreign

employees were officially registered in Malaysia in 2010, which represents about 17.0

percent of all employment. If Malaysia's unlawfully hired foreign employees are

added, the number will probably quadruple (Ministry of Home Affairs 2011). Foreign

labourers are mostly employed in the manufacturing, construction, and agricultural

sectors as professionals, skilled labourers, and unskilled labourers (Central Bank of

Malaysia 2011). According to Kanapathy (2008), the majority of foreign employees

in Malaysia are unskilled or semi-skilled labourers. 1,869,209 foreign workers from

23 different countries were employed in Malaysia as of 2006. In the same year, there

were 55,549 expatriates, professionals, and technical foreign employees. Foreign

4
labour has helped Malaysia with its labour shortage issues. However, the influx of

foreign workers, particularly those from a single nation, raises a number of significant

difficulties and has an impact on local communities in terms of the economy, society,

and politics. In order to reduce the negative consequences of hiring foreign employees

in Malaysia's construction industry, it is useful to identify the demands and adverse

effects. Foreign workers contributed to the reduction of significant labour market

imbalances in the construction sector during periods of economic expansion and

modernization. Even if hiring foreign workers to work in Malaysia's construction

industry has some favourable short-term effects, most people tend to think that it will

have negative long-term effects on society. According to the Ministry of Human

Resources, there were 1.76 million officially registered foreign workers in Malaysia

as of July 31, 2018, working in industries such manufacturing, construction,

agriculture, plantations, and services. The majority of the foreign workers were from

Indonesia (40%) followed by Nepal (21%) and Bangladesh, according to data from

the Department of Statistics Malaysia (15 %). The Malaysian government has direct

control over several tactics. The amount of foreign employees admitted may change

as a result of changes to migration rules, which may minimize the negative effects

that these workers have. The government can't directly affect the other methods, but it

may be able to adopt laws, form task forces or a workforce, or persuade business

associations to come up with ideas to implement the other strategies.

Local workers may be drawn to the construction sector by a campaign to

persuade them to do so and by offering them additional financial incentives to do so.

It's also likely that an advertising effort run by the government will raise public

knowledge of the prospects in the sector, making it more alluring. Without the active

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participation of commercial partners and businesses in the construction industry, it

seems doubtful that the government could actively induce a cessation of all unlawful

employees. By developing industrialised construction methods, putting in place

suitable governance frameworks, and altering their hiring practises to discourage the

employment of undocumented foreign workers, businesses and industry associations

may have an impact on other strategies. This may lessen the sector's allure and the

rate of illegal immigration. Associations that span the sector and include several

companies may offer a good platform to introduce such changes. It was discovered

that the construction industry's over reliance on foreign labour was unavoidable due to

employers' preferences; the wages of international labourers are significantly lower

than those of local labourers. The labour shortage issue in the Malaysian construction

business, however, can only be temporarily resolved by hiring foreign workers from

nearby nations.

In particular, through involvement by governmental authorities or agencies

that can influence policy, long-term solutions require the participation and dedication

of all parties involved in the building industry. By altering their business strategies,

those in the construction sector can also affect the number of illegal labour. An

industry-wide initiative to adopt industrialised building systems would be a crucial

platform that could be leveraged to accomplish this. Such methods would greatly

lessen the unfavourable opinions of the sector. This will encourage more local

workers to think about working in the sector and stop the movement of skilled

workers to countries with higher wage rates. Businesses that use such industrialised

building technologies could discover other competitive benefits related to the strategy,

6
such quicker construction or better quality control. Let's say associations or

businesses are unwilling to invest money in the beginning of such an IBS programme.

In that circumstance, the government might be necessary to set up early

initiatives to motivate business partners to join. It is undeniable that foreign workers

have been crucial in helping Malaysia's construction industry overcome its labour

deficit. However, enforcement strategies are proposed to lessen the country's

dependence on foreign workers, such as introducing industrialised building systems

and luring more local workers into the construction market, in recognition of the over-

dependence on foreign workers and the negative impacts of foreign workers. By

enacting taxes, bolstering governance frameworks and migration policies, diversifying

labour supply sources, and banning illegal immigration, the government could also

lessen these negative effects.

In Addition, these tactics could encourage more local workers to enter the

field, lowering the reliance of construction companies on less expensive illegal

labour. The difficulty of drawing conclusions about illegal labour without speaking to

them directly is a shortcoming of this study. Industry representatives completed the

questionnaires because it was challenging to speak with and get honest answers from

undocumented immigrant workers. These industry representatives' assumptions are

used as the foundation for certain talks about the motivations of labourers. By

speaking with both legal and unauthorised workers in the construction sector, future

study may be able to overcome this barrier.

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 THE IMPACT OF SOCIAL FACTORS TO NATIONAL SECURITY

Many of them travelled to Malaysia which is the plans made by the

middlemen known as agents. Agents frequently make enticing claims about the pay,

the employer, and the nature of the work. However, foreign workers are required to

pay for their promised employment and remain in Malaysia. The agents ask for some

irrational amounts, but if they wish to work in the nation they have little alternative.

To fulfil this need, some international workers borrow money from family or friends.

Some even sell their homes in order to cover the agent's fees and the flight to

Malaysia. In addition to the typical difficulties of acclimating to a new environment,

foreign employees must deal with the majority of the locals' generally unfavourable

attitudes toward them. Malaysians, to a certain extent, link foreign labour to criminal

activity, illnesses, and several societal issues.

Other factors also have a role in those issues. As a result, it happens frequently

that foreign workers are welcomed with a jaded smile. Some people even think that

the flood of foreign employees is the primary cause of the country's rising crime rates,

according to Datuk Dr Syed Hussain Syed Husman, executive director of the

Malaysian Employers Federation (MEF). This is untrue because the proportion of

criminal cases involving foreign employees to all criminal cases in the nation is less

than 10%. The overall impact of an activity on a community and the welfare of people

and families is known as social impact. The family, community bonds, sense of

8
belonging, safety, and housing rental are the main areas that foreign workers have a

negative impact on.

Figure 2: Illegal immigrants are arrested in brothels

Human rights violations Governments on both ends treat foreign employees as

commodities for export or cheap labour, despite the fact that labour migration helps

both sending and destination countries. The rights and welfare of international

employees are not adequately protected by either the origin or destination

governments. As a result, infractions occur to foreign workers (MWs) during the

whole migration cycle. Most frequently, among other things, foreign employees deal

with aggression, abuse (physical and sexual), exploitation, violation of rights like

labour and health rights, limitations on their freedom of movement, and fraud by

middlemen and recruitment agencies. For foreign workers without access to medical

care and health information, hazardous living and working conditions and

occupational injuries pose substantial health hazards. Due to a lack of entitlements,

protection regimes, laws and policies, and access to grievance mechanisms, many

international employees are subject to rights violations and abuses.

9
 Particularly susceptible to exploitation, violations of labour laws, physical and

sexual abuse, etc., are female immigrant domestic employees. A set of rights founded

on the values of freedom and justice that cover a wide range of aspects of human life

are known as human rights. The International Covenant on the Elimination of All

Forms of Racial Discrimination in Employment and Labor The International

Covenant on the Rights of the Worker and the Members of His or Her Family

(ICMW) aims to ensure that foreign employees have the protection provided by

human rights, political, economic, social, and cultural rights (Sookrajowa and Pecoud,

2019). Additionally, it grants new rights to non-citizen employees, such as the ability

to transfer benefits or access data related to the immigration procedure. These rights

are not, however, being implemented.

One of the main areas of difficulties for foreign workers is the language

barrier. Many difficulties may have their roots in the language barrier. Not only for

individuals with less education or none at all, but even for highly educated foreign

workers, poor language skills were a barrier to entry. Most foreign workers are

discovered to be unable to speak the native tongues upon arriving in a receiving

country. Communication with the locals, community integration, and comprehension

of workplace safety laws are frequently hampered by language barriers and cultural

differences. Foreign workers find it challenging to interact with medical professionals,

receive treatment, comprehend announcements, and learn about health and safety

precautions due to language barriers. Contractors that must be accurate in their job to

satisfy safety and security regulations and achieve high production levels have a

10
communication challenge. Smooth communication is crucial in both the hiring market

for employers and the workplace for the foreign worker. Language barriers have

developed in Malaysia as a result of the presence of foreign workers. According to

research, the communication gap caused by the language barrier among foreign

workers in the construction business results in an accident at a building site for 50%

of respondents who were contractors, and for 41% of them, strongly. Due of their

proficiency in the Malay language spoken by Malaysian nationals, the majority of

Indonesian foreign employees do not encounter linguistic barriers.

Other foreign workers, on the other hand, do not speak Malay or English,

which will slow down construction. The study shows that Nepali employees have

poor communication skills with coworkers and management and little knowledge of

job prospects. The risk of workplace accidents and injuries is thought to have

increased as a result of communication issues with coworkers and managers. All

international workers' psychological well-being contributes to the economies of their

host nations, yet many of them struggle to get access to quality medical care. Imagine

that they don't have the same social protections as locals if they fall ill or contract a

communicable disease that can be treated. In that situation, foreign employees are

deported, treating them as disposable goods rather than human beings deserving of

medical care. Numerous female migrant employees suffer from sexual, physical, and

mental assault. The main occupation in the informal sector, which attracts many

women and foreign workers, is domestic work. Foreign domestic employees are more

susceptible to hunger, mental health concerns, and issues with sexual and

reproductive health because they labour in remote locations fully at the employers'

discretion.

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 This statement analysis will undoubtedly aid in understanding the

psychosocial challenges and problems with adaption faced by international workers in

Malaysia. Individual foreign employees may be significantly impacted by a variety of

intercultural issues, including discrimination, challenges with money, language,

culture, and well-being, among others. In this setting, multifaceted international

workers will be able to consider their interactions with Malaysians from many

cultures.

POLITICAL IMPACT ON NATIONAL SECURITY

The detrimental effects of their presence and employment quickly rose to the

level of public discussion and made their way into Malaysia's political agenda. They

started to be perceived as a danger to domestic order and border security. The Foreign

Worker Policy (Dasar Pengambilan Pekerja Asing), which was introduced in early

1992, was developed as a result of numerous steps taken to regularise their influx. The

goals of the policy are dual. First, to promote the legitimate hiring and employment of

foreign employees; and second, to restrict and ultimately end the entry of migrant

workers who are not authorised to work in the country. The Deputy Prime Minister

serves as the chair of the Cabinet Committee for Foreign Workers, which later

changed its name to the Cabinet Committee for Foreign Workers and Illegal

Immigrants. The Foreign Worker Policy (Dasar Pengambilan Pekerja Asing) opened

the door for the legal hiring and employment of low-skilled foreign workers who were

subject to stringent regulatory terms and conditions that tended to deprive the workers

12
of their fundamental rights as Malaysian citizens and employees. They are restricted

from bringing along family members, are not permitted to wed while in the military,

and must pay an annual charge for their work permit, unlike expatriates. Due to the

lucrative labour migration industry, the majority of foreign workers lack proper

documentation. Many people are victims of trafficking and smuggling gangs, which

operate through a convoluted network of participants, including the fictitious

Malaysian ID Card.

The introduction of the foreign worker policy was successful in increasing the

proportion of legal foreign workers (LSFW), but it was unsuccessful in halting the

rise of unauthorised immigrants and their dependents. Despite the numerous steps

taken to limit their entry, the number of illegal migrants (IM) and LSFW increased.

According to the Malaysian Immigration Act 1959/63, IM who break the law may be

detained and taken to the Ministry of Home Affairs Depot, or MOHA Depot, a

detention facility that was formerly known as the "immigration depot" (Depot

Kementerian Dalam Negeri). They may face legal charges for breaking immigration

laws, receive a sentence, and then be deported after serving their time. I don't have

access to justice or even basic rights. However, since the middle of the 1980s, there

have been periodic regularisation and amnesty operations that have given them ways

to avoid being accused, punished, and deported. By undergoing regularisation, IM can

engage in lawful employment, and by taking part in an amnesty operation, they are

exempt from prosecution under the Immigration Act. Instead of being deported, they

can voluntarily return home. Other steps made to stop the growth of IM, beyond from

regularisation and amnesty, include the ongoing border control initiatives known as

Ops Nyah 1 and Ops Nyah 2, which started in 1992. The first is intended to prevent

13
more foreign nationals from entering Malaysia through unapproved entry ports (Jalan

tikus or rat trails). In the latter, IM who refuse or fail to take part in the regularisation

and amnesty exercises are to be exposed. The Immigration Act was revised in 1998 to

increase fines and jail terms and to add caning as a sanction for breaking immigration

laws.

The Act was once again revised in 2002 to add penalties for employing,

harbouring, and transporting IM as well as fabricating government documents. A

special court to deal with illegal immigrants (Mahkamah PATI) was then formed in

2006 to promote speedy resolution of issues involving them. These courts are situated

at the MOHA depot or close by. Human trafficking and smuggling are both intimately

tied to illegal entry. The Anti-trafficking in Persons Act (ATIP) was introduced in

2007 to supplement the current controls on IM growth. The Anti-Trafficking in

Persons and Anti-Smuggling of Migrants Act (ATIP) was updated in 2010 to

encompass human smuggling (ATIPSOM). According to this Act, those who are the

victims of human trafficking or people smuggling are not subject to the same

immigration laws as those who are the perpetrators. While the offenders are "arrested"

under immigration law, incarcerated, and accused in court, the victims are "rescued"

and taken to safe homes until they can be deported. In an effort to stop foreigners

from using fake passports and other documents to let illegal immigrants enter the

nation, the government implemented the biometric identification system to

authenticate a person's identity in 2010.

To maintain its quick economic growth and sustainable economic

development, Malaysia urgently needs migrant workers. However, the government

must exercise extreme caution and take a proactive approach to hiring the most

14
foreign labour possible. Employers' rights must not be disregarded, even though care

must be made to protect their rights and welfare so as not to undermine the already-

existing political relationship between the sending and receiving countries.

Economically speaking, if employers of migrant labour are legally protected,

productivity in that industry is anticipated to rise. In this situation, the employers are

aware that they are bound by the law not only as direction and obligations to hire

foreign employees, but also as assurances and protections of their rights. When both

employers and employees understand their roles, responsibilities, and obligations

towards one another, productivity and the economy can indirectly increase. At the

same time, it fosters a productive workplace. Sending nations and receiving nations

like Malaysia frequently discuss issues relating to migrant workers. Tension rises

when migrant workers experience abuse or unequal treatment in both nations. In these

situations, Malaysian employers are held accountable, which indirectly harms the

political ties between the two nations. Given their interconnected interactions, it

would be better for groups, employers, and employees to grasp their rights, duties,

and responsibilities in the workplace. Both parties will be able to vent their

complaints if necessary if they are aware that their rights are upheld and protected.

The task of governance, then, is not how to stop or prevent migration; rather, it should

centre on how to organise it such that all parties involved—including the source

countries, destination countries, and migrant workers—benefit from it. Instead of

more law enforcement and stricter border restrictions, Malaysia needs more and better

policies.

Global production chains with varying degrees of outsourcing and

subcontracting to numerous suppliers have also emerged as a result of globalisation,

15
driven by multinational firms. As a result, "labour" brokers have formed to meet the

demands of other businesses. The conventional employer-employee relationship,

which holds employers responsible for the working conditions they provide for their

employees, has been compromised as a result of this. 17 Employers are crucial to the

administration of labour migration, the protection of migrant workers, and the

promotion of the development advantages of migration. In each of these procedures,

the employer group has contributed significantly. Employers continue to struggle with

migration, Though. the employment of migrant workers presents employers with a

variety of legal and practical challenges, including finding, enlisting, and ensuring

entry of foreign workers through authorised channels; adhering to intricate and

drawn-out administrative procedures; handling document control; risking sanctions

for hiring migrant workers without authorization; managing relations in multiethnic

workplaces; and ensuring proper training and workplace safety.

CONCLUSION

In particular, non-military domains including politics, economics, and society

would be impacted by the condition of foreign workers in Malaysia. In order to

prevent a threat to Malaysia's security, foreign employees, whether they are present

legally or illegally, must be properly managed. Unless the appropriate steps and

activities are already made to lessen Malaysia's extreme desire for foreign labour, this

flood will continue to give effect to the national security. To ensure that the influx of

foreign employees could fulfil the necessary needs of the local requirement for

employment, policies and regulations governing foreign workers should be enhanced

within year by year base on the percentages of foreign worker.

16
 There is no denying that foreign workers have been crucial in helping

Malaysia's construction industry overcome its labour crisis. However, enforcement

strategies are proposed to lessen the country's dependence on foreign workers, such as

introducing industrialised building systems and luring more local workers into the

construction market, in recognition of the over-dependence on foreign workers and

the negative impacts of foreign workers. By enacting taxes, bolstering governance

frameworks and migration policies, diversifying labour supply sources, and banning

illegal immigration, the government could also lessen these negative effects. The

difficulty of drawing conclusions about illegal labour without speaking to them

directly is a shortcoming of this study. Industry representatives did the questionnaires

because it was difficult to speak with and get honest replies from unauthorised

immigrants. These industry representatives' assumptions are used as the foundation

for certain talks about the motivations of labourers. By speaking with both legal and

unauthorized workers in the construction sector, future study may be able to

overcome this barrier. It is advised to conduct further research on the best ways to

stop illegal immigration as well as how to recruit local workers for the construction

industry. To comprehend the effects of various government policies, these may use

quantitative survey-based research techniques and be complemented by economic

modelling.

The current study is unable to explain the relationship between industrialised

building system implementation tactics and the diversification of labour import

countries. It might be looked into in additional qualitative research. Such study may

identify a number of efficient tactics that may be quickly put into practise without

17
requiring a significant outlay of resources. Repression of foreign employees in

Malaysia is real, as was already mentioned before in the discussion. Even if they have

work permits and passports, they nonetheless face repression. The debt owed to

recruitment agencies, which can result in wage deductions or, worse still, no salary for

the first three months of employment, levy payments for a particular sector, and the

status of the foreign worker are a few of the well-known causes. Because they do not

want to pay higher levies and other financial charges, many employers abuse the work

permits of foreign employees. Agriculture is the sector with the second-lowest levy

payment after domestic help, and many of them also work in other industries. For an

employer, the migrant workers' investment and return on investment are the most

crucial factors. Repression will continue to be a haunting chapter in the lives of the

workers if they are not legalised and given options to protect themselves.

(4,517 words)

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