THE rising demand for foreign labour in Malaysia has inadvertently strengthened syndicates that smuggle undocumented workers into the country, raising concerns over public safety, business compliance, and national security.
Malaysian Employers Federation (MEF) President Datuk Dr Syed Hussain Syed Husman said that the organisation has received reports of foreign workers entering Malaysia through illegal channels and subsequently being offered employment by unscrupulous parties.
He warned that in some cases, syndicates pose as legitimate recruitment agents to deceive employers.
“From the information and research findings, MEF has identified three main patterns. First, employers fall victim due to slow or inconsistent official hiring processes, making them susceptible to agents offering ‘immediate workers’ without proper documentation.
Second, foreigners entering via illegal routes often seek employment in sectors such as construction, plantations, and services. Third, employers unaware of legal risks may hire workers temporarily, not realising their lack of legal status,” he said.
MEF has urged the government to streamline and enhance transparency in foreign labour recruitment, minimising opportunities for syndicates to exploit both employers and workers.
“The main cause of illegal foreign employment is the imbalance between employers’ labour needs and the cumbersome official hiring system, which creates openings for undocumented workers to fill the gaps,” Dr Syed Hussain added.
Economic incentives have also driven the problem. Employers often hire undocumented workers to reduce wages and avoid formal application procedures.
Such practices, however, compromise national security, as some illegally employed workers have been implicated in criminal activities before fleeing the country.
Reports indicate that the influx of undocumented foreign labour has contributed to illegal construction, unlicensed businesses, and sex work, alongside crimes such as theft and burglary.
Authorities have noted that offenders without legal documentation are harder to trace, complicating law enforcement efforts.
“Some employers take shortcuts by hiring workers without permits, paying lower wages, and ignoring their backgrounds. When crimes occur, these workers can easily abscond as their identities are unrecorded,” Dr Syed Hussain explained.
Employers face significant legal risks for hiring undocumented workers, including fines up to RM50,000 per employee, imprisonment of up to 12 months, or both.
Business operations may be suspended during investigations, licenses revoked, and premises blacklisted from hiring legal foreign workers in the future. Civil and criminal liability also arises if undocumented employees are involved in accidents, crimes, or uncontrolled activities.
Dr Syed Hussain stressed that employing undocumented workers fuels an unregulated underground economy, undermining safety standards and the competitiveness of law-abiding businesses.
Crime statistics from Selangor this year reveal 1,931 foreign nationals apprehended for offences including theft, robbery, and rioting as of October, compared to 2,943 last year.
Selangor Police Chief Datuk Shazeli Kahar noted that most arrested foreigners originate from ASEAN countries, and that illegal employment exacerbates population density and social conflict. He emphasised that adherence to legal employment channels allows authorities to monitor workers and prevent criminal activity.
“Employers are advised to hire documented foreign workers. Legal employment enables authorities to verify identities and conduct investigations if needed. Undocumented workers, lacking records and oversight, create opportunities for crime and threaten local communities,” he said. Shazeli also encouraged public cooperation in reporting employers hiring undocumented workers to the police or the Immigration Department.
Community organisations have also called for reforms.
Datuk Seri Halim Ishak, Chairman of the Malaysian Community Care Foundation (MCCF), recommended halting new foreign worker recruitment while implementing an electronic registration system to document all foreign workers. This could include granting amnesty for undocumented workers to regularise their status.
Halim warned that unchecked illegal migration, including refugees and asylum seekers, poses social, cultural, and public health risks, while increasing criminal activity through smuggling and human trafficking networks.
He stressed that cross-border cooperation and targeted policy solutions are vital to managing the issue.
“An influx of undocumented foreign workers places pressure on healthcare, education, and housing services, limiting the government’s ability to provide adequately for local citizens,” Halim said.
“Employers may be willing to pay for permits, but complex approval processes push some to hire illegal workers.” - December 17, 2025
