WHEN refugee families first arrive in Malaysia, many still carry a belief that they are only passing through - a temporary stop before resettlement in a third country, a reset button that will eventually be pressed.
But that pathway is narrowing fast. As global resettlement opportunities decline, Malaysia is increasingly becoming a long-term holding ground rather than a transit hub, leaving thousands of refugees stuck in years - and often more than a decade - of uncertainty.
Refuge for the Refugees Director Heidy Quah says the impact has been significant.
“This prolonged uncertainty affects education decisions, employment prospects, mental health and family stability. Young people who arrived as children are becoming adults without knowing where they belong or what the future holds,” she said.
The shrinking availability of resettlement slots is not unique to Malaysia. Around the world, countries that once absorbed significant numbers of refugees have tightened asylum systems and reduced intake quotas, even as displacement continues to rise due to conflict, political instability, and climate-related disasters.
The result is a widening gap between global need and available solutions - one that is increasingly being felt in countries like Malaysia.
Quah said for Malaysia, the key question is whether we continue managing refugees as an immigration issue alone or begin viewing them through the lens of labour markets, public health, education and social cohesion.
“If policy remains unchanged, humanitarian challenges will likely worsen. If reforms are introduced, Malaysia has an opportunity to become a regional leader in pragmatic refugee governance,” she added.
And, what would a realistic and workable refugee framework look like in practice? Rather than adopting a full Western-style asylum system, Quah said Malaysia could begin with a pragmatic set of reforms aimed at improving governance, reducing exploitation, and recognising the long-term reality of displacement.
A realistic refugee policy, according to the refugee advocate, does not require a complete restructuring of Malaysia’s immigration framework. Instead, it could begin with targeted, incremental reforms that address immediate gaps.
These include recognition of UNHCR-issued refugee documentation, allowing refugees to be identified and monitored more effectively within the system.
Other key proposals include granting legal permission to work in selected sectors facing labour shortages, expanding access to affordable healthcare and ensuring refugee children can access formal education.
“This would improve governance, reduce exploitation and allow refugees to contribute more meaningfully while they remain in Malaysia,” she said.
She also stressed the importance of reducing reliance on immigration detention, particularly for children and exploring alternatives that prioritise welfare and protection.
“Malaysia may not wish to become a country of permanent settlement, but policymakers must acknowledge the reality that many refugees will remain here for extended periods.
"The question is whether they spend those years in limbo or are allowed to live with dignity and contribute to society,” she added.