Nowadays, the transport and communication between different country because of the development of technology such as the use of the train, plane and so on. This has actually caused that the transfer of the workforce becomes much easier. In a good condition, this situation was very beneficial to solve the country’s workforce shortage problem. However, it actually has also caused another problem which is the increase in the unemployment rate, and also the currency outflow. Based on data we can also found that actually, the dependency of immigrants is 1918 thousand in the year 2005 and increasing until 3430 thousand in the year 2019 which mean it became more serious. So, what step should the government take to reduce dependency on these foreign labor.
It needs to focus on the cause of dependency on foreign labor which is because most of the Malaysian citizens was refused to participate and work in the processing industry such as parts manufacturing, chip manufacturing as an operator, and so on. These types of work are actually requiring very much of the workforce and provide a lot of employment chance. However, the problem is these types of work only have a lower salary which was about RM1000 to RM1300 usually and this is why people refuse to work on it. So, the first solution is the Malaysian government needs to take some action and change to increase the benefits of this type of work. For example, more salary, subsidy, the potential to grow along the work to make it can be more attractive to the Malaysian citizen.
Secondly, the government should take action to encourage more manufacture or industry to be automated. For example, the government could give more subsidies or decreasing the tax to encourage them. This action shall able to decrease the cost of manufacture and give them have the ability to bear the cost that transforms to industrial automation. However, this step is duality, have both advantage and disadvantages. It can solve or decrease the dependency on foreign labor, and more it can increase productivity, but it will decrease the employment opportunities in Malaysia.
Third, the government should also try to cultivate a local workforce or labor to fill the gap of workforce shortage. To do this, the government has a very necessary step to do which is to change the citizen's view or perspective on some of these types of jobs. Usually, people think that those jobs were no potential for growth and low salary, so they won’t work on it if can. The government has to first change this view from citizen to become not that underestimate these types of job and yet give some good condition to those who work on it to attractive locale citizen to join it. Other than that, the government could focus on education on the hard skills from small and let them more familiar with this type of knowledge. This shall be helpful to increase the labor supply in a more specific economic field.
Fourth, the Malaysian government could have a tighter rule and regulations, even more, the transit inspection to limit the transfer of workforce labor between countries. For example, the government can limit the number of foreign workers that allows in one area or factory, limit ages, gender, and decrease the number of permits that been sign out for enterprise. This shall able to make the workforce transfer become harder and make it less. Moreover, the government could set up how many percentages of workers could an enterprise hiring and how many percentages of workers should be local workers to ensure they still have career opportunities for the local citizens.
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