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0 INTRODUCTION
1.4 OBJECTIVE
The research being carried out in Klang Valley. The research will be conducted by
quantitative method. The data is collected from 120 people in a selected company. The
targeted respondents are mainly from construction background courses such as contractor,
quantity surveyor, architect and consultant. Moreover, the questionnaires will be distributed
to the targeted people and collect on the spot after they answered. The questions that will be
distributed to the targeted person will be created in various questions. Reliability of the
results is ensured because Klang Valley is one of the recently developing city in Malaysia.
2.0 LITERATURE REVIEW
2.1 INTRODUCTION
The word "foreign labour" is classified as people who are employed on a short-
term basis to work in a nation of which the person is not a citizen (PUAH JIN MING
2017). In brief, foreign workers allude to those who work away from their countries of
origin due to a few factors such as higher exchange values or the foreign country's
potentially economic and political steadiness. Despite that, years ago, several foreign
labour schemes were formed and executed in a growing nation to improve shortage of
workforce. In addition, (Mohd Arif Marhani 2015) defined "foreign labour" as someone
who is a legal or illicit, skilled or unskilled labourer employed in different industries in
this country.
This chapter will cover all the matters relating to the impact of foreign labours in
Malaysian construction industry, the factors that influencing Malaysian construction
companies by employing foreign labours and issues that emerging by employing foreign
workers.
2.2 THE IMPACT OF FOREIGN LABOURS IN MALAYSIAN CONSTRUCTION
INDUSTRY
Surveys in the previous decade have shown that the attentiveness of foreign labour
were essentially in the making of cash in Malaysia and the unlawful start-up of a business
in Malaysia. All things considered, no levy to be charged and the income produced does
not benefit the economy in Malaysia. In a study done by [ CITATION SrA18 \l 17417 ],
it was shown that Bangladeshi labours are in Malaysia to feed their family in their
country by expanding their stay in Malaysia. About the fact that earning potential is low,
but it may eventually affect the nation's economy mainly from parts of money exchange
and the nation's balance of payments (BOP) as currency value declines, and afterwards it
will influence the nation's reserve [ CITATION Nas15 \l 17417 ]
Literature has shown that the effect on economy and efficiency is mostly
attributed to problems with Ringgit's salaries, levies and outflows. This is an effect on the
country's efficiency to face local labour-force scarcity owing to income unhappiness and
countless foreign labours that are undetectable and do not contribute to income tax but
enjoy currency. Malaysia's economy cannot bear in managing this, when we have a vision
for 2020. The present currency value is universally decreasing and this shows the dire
situation. Whenever left unattended, there would be a wide spectrum or gap inside our
culture and conflict of interest would occur.
Earlier review by [ CITATION SrA18 \l 17417 ] showed that foreign labour has
several adverse effects like poor workmanship. This is because they are poorly skilled and
most are uneducated. On the other side, local employees are less involved in construction
sector, slow progress in technological growth, raise offence and the presence of illicit
labours. Extensive utilization of semi-skilled and unqualified employees may impede the
implementation of modern technologies in industries because it becomes less expensive
to participate in labour-intensive activities utilizing old technology. In any case, foreign
workers are essential in specific parts, primarily in construction, plantation and low-end
services sectors as a few local employees are selected to work in this field. Foreign
workers are expected to take on certain sectors along these lines [ CITATION Aru16 \l
17417 ].
In reality, some contended that the flood of foreign labour would trigger issues in
the imported nation's social, economic, and political regions as many entered the country
illegally [ CITATION Nas15 \l 17417 ]. According to [ CITATION Aru16 \l 17417 ] the
national Professor Council in 2016 commented in the press on the problem of foreign
labour. The president said that long-term efficiency would be decreased by high and non-
stop reliance on foreign labours. This is because of lack of employer commitment to be
technologically advanced in their business. This statement is also supported by
[ CITATION SrA18 \l 17417 ], firms are using fewer resources and investment-focused
technology because of foreign labour influx.
Besides that, it would be a problem for Malaysia to prepare the country for a high-
paying nation. Malaysia, being a multiracial country, which has several ethnicities. The
existence of foreign labours has now reached one of the ethnicities, and this may
influence Malaysia's culture as it rises. The culture dimension must be secured before it
becomes a surprise society for Malaysians.
AUTHOR [ CIT [ CITA [ CITA [ CITATI [ CITA [ CITATI Total
S NAME ATI TION TION ON TION ON Nor15 citatio
ON Bor15 \ SrA18 Aru16 \l Nas15 \ \l 17417 ] n
Mel1 l 17417 \l 17417 ] l 17417
IMPACT 5 \l ] 17417 ]
S 1741 ]
7]
Econom X X X X X 4
y
Social
Political
Cultural X
2.3 FACTORS THAT INFLUENCING MALAYSIAN CONSTRUCTION
COMPANIES
BY EMPLOYING FOREIGN LABOURS.
For two decades away, the enrolment of foreign labourers has been observed,
especially faced by developing nations, for example Malaysia. As we aware, hiring
foreign labour in Malaysia minimizes the worker's scarcity in some industries,
particularly in the incompetent field of work. [ CITATION Kev17 \l 17417 ] expressed
that foreigners ease Malaysia's economic development as their existence benefits a few
sectors, such as construction, farming and manufacturing from experience scarcity. Local
employers, in the construction industry really want to hire foreigners because of their
readiness to work in 3D (dirty, dangerous, difficult) [ CITATION Nur171 \l 17417 ].
Based on the author, the elements of employment for foreign labourers might be
grouped in terms of accessibility, salary, working hours, working climate and education
level[ CITATION Moh15 \l 17417 ]. On the other side, the requirements discussed in the
enrolment and preference of employers of migrants are education level, working
experience, nationality, demand for wages, and ability for work [ CITATION Kev17 \l
17417 ]. However, the element of foreign labour now focuses on accessibility, quality of
education and working conditions.
AUTHOR [ CI
NAME [ CIT [ CIT [ CIT [ CIT [ CI TA
ATIO ATI ATIO ATIO TAT TIO
N ON N N ION N
FACTOR (MOHAME Total of
S
Nur17 Abd1 D 2015)
SrA1 Kev1 Naj1 Mo citation
1 \l 8 \l 8 \l 7 \l 9 \l h19
17417 1741 1741 1741 1741 \l
] 7] 7] 7] 7] 174
17 ]
The
availability of X X X X 4
foreign labours
The education
X X 2
levels
The working
X X X X 4
conditions
Organizational
X X 2
Performance
Table 2.2.1: FACTORS THAT INFLUENCING MALAYSIAN CONSTRUCTION COMPANIES BY EMPLOYING
FOREIGN LABOURS.
2.4 Solutions to decrease the quantity of Foreign Labours in Construction Industry
When there is an issue occurred, obviously there will be an approach to solve it. In
the context of foreign labourers, we have to look at several angles such that things can be
dealt together. Foreign labour problems are no longer new to our country and this case
involves all the countries. In this situation, the parties that need to work hard are the
government, since they have the supreme power to give such orders.
Foreign labour inflows have created problems thus everyone from all sides should
take this issue seriously. In this manner, there are many different approaches to address
these problems. Authorities are to enforce lawful action on industry that does not meet the
standard enrolment of foreign labourers hence impose strict discipline on those involved
in the offence.
The Prime Minister of Malaysia officially announced in the 2016 budget that, as
of 1 July 2016, the lowest pay permitted by law will rise from RM900 to RM1,000 per
month in Peninsular Malaysia, and from RM800 to RM920 for Sabah, Sarawak and
Labuan Federal Territory. The aim is to lessen the burden of increasing living expenses.
Whatever it might be, what is the difference between local citizens and international
labour? Yeah, it will support local workers, but the drawback is that local citizens are
considered equal to migrant labour, with identical advantages.