THE EFFECTS OF FOREIGN WORKERS TO THE MALAYSIANS ECONOMY

Malaysia is developing rapidly and striving towards becoming a developed country by the Year 2020. In the process of doing so, the need to hire foreign workers is inevitable. Consequently, their arrival will have effects on the Malaysian’s economy. Some of the major effects are the transferring of technology, skills and knowledge to our country, growth of economic activities and competition of jobs opening to the locals too.

First and foremost, highly skilled workers are crucial towards developing Malaysia. The government has engaged the highly skilled educated expatriates in the manufacturing, technology, education and other fields. By doing so, the foreign workers will be transferring their skills and knowledge to the Malaysians. For example, the Japanese transfer their manufacturing technology in automotive industries. As a result, we are now producing our own cars as we have the knowledge and expertise to do so. Economically, Malaysia also managed to monetarily save as Malaysians are trained locally instead of being sent overseas.

Apart from that, the foreign workers contributed to the economic growth as their presence put demands on the growth of public amenities and services. Malaysians economy will be more alive as new housing areas are being construct, transportations projects to be improved and even more entertainment and shopping centers are being open to cater for their needs. There will also be demands for other necessities such as food, health, educations and clothing. Thereby, these will further spur the economic activities.

On the other hand, when we hire the foreign workers, jobs opening for the locals are diminishing as they have to compete with the foreigners. In fact, some companies prefer to hire foreign workers as they are willing to accept lower pay from the locals especially in the lower skilled jobs. Consequently, more locals will be jobless and unable to contribute economically to the country. Furthermore, the burden will be put on the government as social welfare expenses will be higher.

In conclusion, there are positive and negative effects of foreign workers to Malaysian’s economy. Thus, the government plays an important role on balancing the situation so that the policy of having foreign workers in Malaysia will have maximum benefit to the country.

SITI NABILAH BT MOHD. AMINUDDIN