29 Jul 2020
Amid the coronavirus pandemic, the Malaysian government stated that it will restrict foreign labour hiring to the construction, agriculture and plantation sectors. The move was made in order to help those affected by the pandemic find job opportunities.
On Wednesday, a deputy minister confirmed that only three sectors will be able to hire foreign labour.
Human Resources Deputy Minister Awang Hashim noted remarked that local employment would be aided if foreign labour hiring is limited, saying that "Other sectors will be staffed by local workers. This is the guideline we have set for our policy to reduce the number of foreign workers.”
He added to point out that Malaysia has around 2.1 million documented foreign workers.
Malaysia's statistics department confirmed that there was an increase of 5.3% in unemployment in May due the lockdowns imposed to mitigate and minimise the spread of the coronavirus.
It also noted that Southeast Asia's third-largest economy expanded by 0.7% in the first three months of the year. The area suffered the effects of the coronavirus and plunging global energy prices.
Labour markets and precautionary behaviour in homes and firms are expected to impact the second quarter, Malaysia's central bank forecasted.