04:05 APAC
Asia Briefing from Dezan Shira & Associates
Malaysia Malaysia’s economy relies heavily on foreign labour,
hiring. Employers who fail to comply with regulations may face severe penalties, including fines, business suspensions, or the deportation of workers. The government operates a blacklist system, preventing non- compliant employers from hiring foreign workers in the future, to ensure a more regulated and ethical labour market. ASEAN Briefing’s guide , Understanding Malaysia’s Foreign Worker Policies, breaks down the hiring process, work permit and visa options, compliance and employer obligations and industry-specific foreign labour regulations.
particularly in key sectors such as manufacturing, construction, and services. As of 2024, there were approximately 2.3 million foreign workers in the country, making up 14.6 percent of the total workforce. Malaysia has a strict enforcement regime to ensure compliance with foreign worker policies. Labour inspections are regularly conducted by the Department of Labour Peninsular Malaysia to identify common compliance issues such as underpayment, lack of insurance, and illegal
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GLOBAL PAYROLL MAGAZINE ISSUE 10
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