NAVIGATING POLICY CHALLENGES IN MALAYSIA’S CONSTRUCTION SECTOR: THE GOVERNMENTAL DILEMMA ON THE ISSUE OF FOREIGN LABOUR SHORTAGE IN MALAYSIA

Abstract

Malaysian economic development has attracted numerous foreign labourers due to insufficient labour in various sectors, including construction, manufacturing, and plantation. The inflow of more foreign workers into Malaysia has caused a fluctuation in governmental policies towards the decision to employ foreigners. The current study investigated the issues emerging in governmental decisions and policies regarding the foreign labour shortage in Malaysia using qualitative methodology. The government allowed foreign workers to switch employers to fulfil labour needs following local workers’ disinterest in specific jobs and labour shortages. The issues persist, as the construction sector is required to compete with the agricultural and plantation sectors for foreign workers. Resultantly, inter-ministry cooperation between the Ministry of Home Affairs (KDN) and the Ministry of Human Resources (KESUMA) was proposed to benefit national development while controlling the negative impact on the country. The findings contributed to understanding the current issues of foreign labour shortage in Malaysia.