Problem Statement

Problem Statement

Over the past 5 years (2008 – 2012), the number of foreign labour in Malaysia has increased dramatically from 1,935,975 (2008) to 7,018,300 (2012).

According to the data, most of the foreign labours in Malaysia are coming from Indonesia (50.9%), Bangladesh (17%), Myanmar (7.8%) and others. They are mainly involved in manufacturing, construction and plantation sectors which are considered as risky job.

Generally, foreign labour chooses to work in Malaysia due to the diversification of culture and better pay compare to their home country. Foreign labour can easily get a job with RM800 to RM900 pay in Malaysia while they only get around RM 400 to RM500 in their home country with unstable condition such as war, terrorist, natural disaster, etc.

Research Problem

1.      What are the possible reasons or factors for the increase in number of foreign labour?

2.      Who responsible for it?

   ü  Government

   ü  Foreign government

   ü  Workers

   ü  Employers

   ü  Minister

Research Questions

IV 1 à Do government policies lead to the increase of foreign labour in Malaysia?

IV 2 à do job market condition create the demand for foreign labour in Malaysia?

Research Objective

 ü  To find out the work permit condition that influences the government policy on foreign labour that affects the increasing in number of foreign labour.

 ü  To identify the attractiveness of environment that influences the job market that affects the increasing in number of foreign labour.

 ü  To find out the supply of local workers that influences the job market that affect the increasing in number of foreign labour.

 ü  To identify the employment term that influences the job market that affect the increasing in number of foreign labour.