Managing Labour Migration in Malaysia: Guest Worker Programs and the Regularisation of Irregular Labour Migrants as a Policy Instrument

Malaysia was built on immigration and, like other labour-importing countries, acknowledges the case for temporary labour migration as a solution to labour shortages in the country. The government has endorsed guest worker programs that are typically short term, and that include a range of restrictions to regulate the movement of low-skilled foreign workers. Most exclude explicit reference to labour protections. The State's low-skilled labour policy essentially vacillates between ensuring a continual supply of cheap labour and instigating crackdowns on undocumented migrants. Although the State originally imposed higher levies on skilled migrants, it has recently amended this policy and currently offers skilled migrants pathways to permanent residence and citizenship. Nevertheless, the sustained reliance on cheap labour and the way the policy is managed are preventing Malaysia from moving up the value chain. Additionally, the activities of labour brokers, disparities in the foreign labour levy system, and demand for labour have contributed to the expansion of irregular migration. Like other countries, Malaysia also relies on the regularisation of irregular migrants as a policy tool to extend legal status to undocumented economic migrants.