Malaysia

Active foreign workforce in Malaysia falls by 13 per cent

Latest figures show a decline from 2.45 million the previous year, reflecting government efforts to reduce reliance on foreign labour across key economic sectors

Updated 1 year ago · Published on 03 Nov 2025 4:45PM

Active foreign workforce in Malaysia falls by 13 per cent
Abdul Rahman says foreign employment is currently restricted to six formal sectors, among them being construction, services, plantations, agriculture - November 3, 2025

MALAYSIA’S active foreign workforce stood at 2,132,578 as of 15 October, marking a 13 per cent decrease from 2,452,010 recorded in the same period last year.

Deputy Minister of Human Resources Datuk Seri Abdul Rahman Mohamad said the decline reflects the government’s ongoing efforts to reduce dependency on foreign labour across all sectors of the economy.

“The manufacturing sector recorded 622,388 workers, followed by construction (589,684), services (390,607), plantations (263,131), agriculture (158,628), foreign domestic helpers (107,375), and mining and quarrying (765),” he told the Dewan Rakyat during a question-and-answer session.

Abdul Rahman was responding to a question from Datuk Awang Hashim (PN-Pendang) regarding the number of foreign workers in the country by sector and the government’s stance on limiting their participation to optimise the domestic workforce.

He explained that foreign employment is currently restricted to six formal sectors – construction, services, plantations, agriculture, mining and quarrying – while the informal sector permits only foreign domestic helpers.

The government’s policy under the 12th Malaysia Plan (RMK12) stipulates that foreign workers must not exceed 15 per cent of the national workforce, with targets of 10 per cent by 2030 under RMK13 and five per cent by 2035.

“To encourage the hiring of local workers, particularly in semi-skilled and skilled roles, various measures have been implemented, including the freeze on approvals for new foreign worker quotas and applications announced on 18 March 2023, as well as the phased implementation of the levy mechanism from 2026,” he added.

Abdul Rahman also highlighted the ministry’s efforts to strengthen Technical and Vocational Education and Training (TVET) programmes in collaboration with domestic and international companies, through agencies such as HRD Corp, TalentCorp, and the Social Security Organisation (PERKESO), aimed at upskilling the local workforce. - November 3, 2025

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