Foreign Workforce in Malaysia Drops by 13% — Govt Moves to Reduce Dependence on Migrant Labor

KUALA LUMPUR:  Malaysia has recorded a significant 13% decline in the number of active and registered foreign workers , according to the Min...

KUALA LUMPUR: Malaysia has recorded a significant 13% decline in the number of active and registered foreign workers, according to the Ministry of Human Resources (MOHR).

As of October 15, 2025, a total of 2,132,578 foreign workers are employed across the country — compared to 2,452,010 workers in the same period last year.

Deputy Human Resources Minister Datuk Seri Abdul Rahman Mohamad told Parliament that this decline reflects the government’s ongoing efforts to reduce reliance on foreign labor across all economic sectors.

---

Sector-Wise Breakdown of Foreign Workers

According to official data, the current figures are as follows:

• Manufacturing sector: 622,388 workers
• Construction: 589,684
• Services: 390,607
• Plantation: 263,131
• Agriculture: 158,628
• Domestic helpers: 107,375
• Mining & quarrying: 765 workers

Abdul Rahman Mohamad said that foreign worker recruitment is now limited to six formal sectors — construction, services, agriculture, plantation, mining, and quarrying — while in the informal sector, only domestic workers are allowed.

---

Government Targets Lower Foreign Labor Ratio by 2035

The Deputy Minister emphasized that the foreign workforce should not exceed 15% of Malaysia’s total labor market.
The government aims to gradually reduce this ratio to 10% by 2030 and 5% by 2035 under its national workforce restructuring plan.

He also confirmed that since March 18, 2023, the government has maintained a freeze on new foreign worker quotas and plans to implement a Multi-Tier Levy Mechanism starting in 2026.
This policy is designed to encourage local employment and create better job opportunities for Malaysian citizens.

---

TVET Expansion to Empower Local Workforce

To support this transition, the government is expanding Technical and Vocational Education and Training (TVET) programs in collaboration with both private and international institutions.
Key agencies such as HRD Corp, TalentCorp, and PERKESO are involved in upgrading skills and ensuring that local workers become more competitive in the job market.

The Human Resources Ministry stated that the TVET initiative is central to Malaysia’s long-term vision of reducing dependence on foreign workers while boosting productivity and innovation in the domestic economy.