Publication:
The dual-edged impact of migrant labour on Malaysia's economy: labour market distortions and EPF challenges
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Date
2025
SDG:
Abstract
Malaysia's reliance on migrant workers, initially intended to fill labour shortages in 3D sectors (dirty, dangerous, and difficult), has contributed to wage suppression, socioeconomic inequality, and long-term risk to the Employees Provident Fund (EPF). This paper examines how weak labour governance facilitates the displacement of B40 locals from higher-value jobs, stagnates productivity, and intensifies competition with informal migrant labour, including undocumented workers. This paper advocates for a three-pronged reform strategy: prioritising the upskilling of the B40 group, implementing innovative migration governance, and aligning social protection systems with productivity initiatives. These integrated policies are necessary to protect the EPF's viability and promote equitable growth aligned with the Sustainable Development Goals (SDGs).
Keywords
Migrant workers , EPF sustainability , Labour market distortions , Wage suppression , Socioeconomic inequality , Malaysia
Citation
Othman, N., Noor Haslan, A. I., & Md Zabri, M. Z. (2025). The dual-edged impact of migrant labour on Malaysia's economy: Labour market distortions and EPF challenges. Social Protection Insight, 8, 124-133.
Publisher
Employees Provident Fund (EPF)
DOI
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The_dual_edged_impact_of_migrant_labour_on_Malaysia_economy_Nurhuda_Mohd Zaidi.pdf
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