Control ringgit outflow, increase women's participation in workforce

SHAH ALAM - The Economy Ministry's target to gradually reduce the country's dependency on foreign workers by 2030 is expected to decrease the outflow of ringgit to foreign countries and boost local women's employment.

Future Labour Market Research Centre (EU-ERA) economist Muhamad Zharif Luqman Hashim said the effort would drive Malaysia's economy by prioritising local labour.

He said according to data from the Department of Statistics Malaysia (DOSM), the registered number of foreign workers in the country has reached 1.8 million, significantly impacting the nation in various aspects, including the economy.

"Generally, foreign workers do not spend their salaries in Malaysia but rather send the money back to their home countries.

"Therefore, with increased local participation in the workforce, it will further stimulate the domestic economy when more Malaysians spend money within the country.

"The country can also further increase the recruitment of female labour.

"This aligns with the government's target in the 12th Malaysia Plan (RMK12) to raise the rate of women in the workforce to 60 per cent from 55.5 per cent," he told Sinar.

Zharif said initially, the government's efforts might have a minimal impact on the 3D (dirty, dangerous and difficult) job sectors which largely relied on foreign labour.

To reduce dependency on foreign labour, he said the country faced some constraints due to Malaysia's relatively unstable economy caused by geopolitical issues.

"Employers are also expected to face challenges in attracting younger workers to jobs in sectors that significantly rely on foreign labour, such as construction, agriculture and retail.

"Hence, the implementation of Academy In Industry (AiI) and phasing down of foreign workers through various levies (MTL) will strengthen the local workforce.

"Progressive wages can also be one way for the government to increase salaries based on skill improvements which translates to increased productivity.

"Moreover, employers need to upgrade their technology utilisation in operations, aligned with the need for increasing job opportunities for skilled local workers compared to foreign workers who lack these skills," he added.