Retain 15% foreign workers, raise their cap to 2.65 million

The government has been urged to retain the policy of having 15% foreign work force in the job market while raising the cap of foreign labour to 2.65 million.

“Currently, foreign workers cap of 15% of the total workforce amounts to 2.5 million, employed across six formal sectors and one informal sector in the country. With the current total workforce at 17.65 million, the 15% cap of foreign workers should be 2.65 million and not 2.5 million,” said Lim Guan Eng (PH-Bagan) in a statement.

“Retaining the 15% quota of foreign workers and raising the foreign workers cap from 2.65 million from 2.5 million would go a long way to overcome the labour manpower problems of many employers.

“There have been unverified complaints in the construction sector that it is easier for government projects to get more foreign workers’ approval as compared to those in private projects.”

He raised the issue following complaints from unsuccessful employers from 2025 over the special foreign worker application window from 19 Jan to 31 March.

The application has been filled up.

Lim who is also DAP adviser pointed out that failure to resolve foreign worker shortage may stifle this year’s economic growth.

“Malaysia recorded 2,132,578 active and legally registered foreign workers as of October 15 2025, reflecting a 13% decrease from the 2,452,010 workers reported during the same period in 2024.

“Any failure to resolve the current shortage of foreign workers may result in stifling economic growth for this year.”

The micro small and medium enterprises would be affected as well despite the strong fourth quarter growth at 6.3% in 2025.

“However the benefits of this strong economic performance is uneven with many Micro Small and Medium Enterprises or MSMEs, suffering immensely from poor business due to intense competition and price-reduction from foreign companies as well as dumping of foreign goods.

“The severe worker shortage faced by companies doing well and those not doing well threatens the current growth trajectory for the economy this year.”