Malaysia Records 13% Drop in Foreign Workers as Government Pushes to Reduce Dependency

KUALA LUMPUR (Nov 3) – Malaysia recorded a total of 2,132,578 active and legally registered foreign workers as of October 15, reflecting a 13% decrease from the 2.45 million workers reported during the same period last year.

Deputy Human Resources Minister Datuk Seri Abdul Rahman Mohamad said the decline shows the government’s commitment to reducing reliance on foreign labour across all major economic sectors.

The manufacturing sector continues to employ the largest number of foreign workers at 622,388, followed by construction (589,684), services (390,607), plantation (263,131), agriculture (158,628), domestic helpers (107,375), and the mining and quarrying sector (765).

Abdul Rahman noted that recruitment of new foreign workers is now limited to six main sectors, with policies under the 12th Malaysia Plan (12MP) capping the hiring of foreign labour to no more than 15% of the national workforce. Targets aim to reduce this to 10% by 2030 and 5% by 2035.

He also highlighted several ongoing initiatives, including streamlined approval processes for quotas, multi-tier levies beginning in 2026, and strengthened cooperation with agencies such as HRD Corp, TalentCorp, and Socso to enhance skills training for local workers.

The minister reiterated that Malaysia remains focused on promoting local manpower while ensuring sustainable growth across key industries.