Written by: Averroes
(1.0) Introduction
The Malaysian Employers Federation (MEF) urged the government that sectors which require foreign labour are permitted, as to steer our country's economic impulses. The president of MEF, Datuk Dr. Syed Hussain Syed Husman commented that local unemployment and sectoral issues are two non-idiosyncratic. The sectoral side involves the 3D which is the dirty, dangerous and difficult jobs.
This may be explained that, Malaysian employers prefer low-skilled construction workers, because their wages were cheaper than local workers.
Meanwhile, the government announced the 12th Malaysia Plan, which seeks to curb the mismatch of jobs and graduates. To ensure that more graduates are part of the high-skilled workers, this would improve the quality of human capital. Mismatch occurs when graduates are unable to seek jobs, due to shortage of the jobs that their qualifications to do not meet their expectations.
Currently, there are 500,000 Malaysians unemployed. If no measures are taken to solve this, more consequences may arise. Also, Malaysia's high-skilled workers are also moving out, which this phenomenon is called as brain drain.
(1.1) Important definitions
According to the International Organization for Migration (IOM, 2011) defined migration as the movement of a person or a group of persons, either across an international border, or within a country.
According to the International Labour Organization (ILO, 2018a), international migrants are all foreign population and foreign‐born population who are usual residents of a given country.
Also, ILO states that the reasons why there is high numbers of migration is because of prolonged exposure to poverty, wars and famine.
(2.0) Socio-Economic Perspective
Malaysia is known to be a station for migrants. Known as the 'South-South migration', this phenomenon could pose sizeable effects onto our country. In 2013, more than 25% of foreign-born workers in Southeast Asia were employed in Malaysia. Empirical studies have shown that, immigration allows for positive economic effects, which generates productivity and specialisation in different tasks and occupations.
Perhaps Malaysia is a top destination for migrants, because the World Bank Group 2019, states that motives for migration is to achieve higher income for better employment, economic and social inequality, demographic imbalances and climate change.
There are two types of migrant workers, one are the high-skilled and the low-skilled. High-skilled workers or migrants may incorporate special skills and knowledge that improves firm performance. In Malaysia alone, as of the fourth year quarter of 2020, 30.1% of the 4.56 million workers were in the skilled occupation. 62.4% of the population are from the semi-skilled category which is 5.279 million.
For low-skilled workers, they contribute significantly in export-oriented businesses and the assembly industry. The number of low-skilled workers are at 1.113 million people.
There are negative trends if there is a continued influx of migrant workers, especially if we import high-skilled migrant workers. There is a potency for us to remain trapped in the middle-income group of nations, if we are too wrapped around low-value added productivity activities.
Not to mention, it was stated that allowing migrant workers would replace locals, which increases competition. It would also lead to lower wages for migrants, which increases the likelihood of migrants coming to Malaysia.
Though, the World Bank and the Malaysian Ministry of Human Resources clarify that there would be no issue of importing high-skilled foreign workers that causes negative employment or effects on our wages. The problem lies is that, we spend much of our foreign immigrants, both high-skilled and low-skilled in low-value activities. Also, if we are able to complement both the skills of locals and migrants, that would not be a problem. This would ensure greater productivity.
It is suggested that, Malaysia should be more prone and nimble when it comes to R&D, weaknesses in our higher education, low numbers of local high-skilled workers, sluggish institutional progress and limited diversification of our economy to the service sector.
For the service sector, even if more diversification is required, that sector has increased, especially in the wholesale & retail trade, human health & social work, communication & information, education as well as food & beverages. This is good considering we are moving there, while declining away from the agriculture, mining and quarry sectors.
A developed country must transition further into the service sector and improve on gaining more high-skilled workers. The Malaysian manufacturing industry also contributes the 2nd most to our economy. This includes the electrical, electronics, optical products sub-sector, petroleum, chemical, rubber, plastics and non-metallic minerals, basic metal and fabricated metal products.
(3.0) How do we increase more high-skilled workers?
Again, Malaysia lacks the number of skilled workers and lower productivity growth from limited creativity and innovation in the workforce. Therefore, the Malaysia Education Blueprint 2013-2025 was launched as to enable Malaysia in producing students who are able to think innovatively and meet with the demands of the economy. This leads to many obstacles in business growth, including SMEs.
This is why our education must be improved. Students with good command of English, equipped with problem-solving skills and effective social networking skills are closer to become a high-skilled worker. Teachers must also play a more pragmatic role in educating their students, while also become more competent in imparting knowledge. That is why also, schools in rural areas and in Sabah and Sarawak must be afforded with proper facilities and internet connection.
(4.0) Conclusion
To conclude, we need should allow and accept both high and low skill workers into our country, as they could contribute to our economy's productivity. However, more focus should be focused on high-skilled workers as they generate more income, innovation and development for our country. Educating more of our population would tremendously assist in breeding more generations of high-skilled workers. The number of foreign workers in high-skilled and low-skill fields must be complementary with our locals, despite possibility of the loss wages and locals left no jobs, they should compete.
There would be obstacles in educating our youths, therefore a modern education system through the Industrial Revolution 4.0 (IR) and digitalisation of schools is important. Our school syllabus must be updated and should also equip students with basic business knowledge, when they enter into SMEs workforce, the manufacturing sector or even in the service sector. Hopefully, improving our education for students, that once they graduate, they are able to meet expectations of employers and self-sustain in other pursuits of passion.
(5.0) References;
Dhesegaan Bala Krishnan. (September, 2021) Sectors dependent on foreign labour need to hire workers from overseas. Retrieved from, https://www.nst.com.my/news/nation/2021/09/731328/sectors-dependent-foreign-labour-need-hire-workers-overseas
Jordaan, J. (2017) Foreign workers and productivity in an emerging economy: The case of Malaysia. Review of Development Economics. 1-26. Retrieved from, DOI: 10.1111/rode.12334
Labour Market Review Malaysia, Fourth Quarter 2020. (n.d) Department of Statistics Malaysia. Retrieved from, https://www.dosm.gov.my/v1/uploads/files/1_Articles_By_Themes/Labour%20Market/Labour%20Market%20Review%20Q4%202020/Labour%20Market%20Review,%20Q4%202020,%20Malaysia.pdf
Structural Policy Country Notes: Malaysia. Retrieved from, https://www.oecd.org/dev/asia-pacific/Malaysia.pdf
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