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Migration and development in Malaysia: the impact of immigrant labour in the manufacting sector, 1986-2010


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Item type Conference or Workshop Item
Subjects 300 Social sciences > 303 Social processes
Division/Agency LPPKN - National Population and Family Development Board, Malaysia: Population and Family Research Division
Keywords Immigrant labour, Manufacturing, Unskilled workers, Real wage
Additional Information National Population and Family Development Board (NPFDB) in collaboration with Population Studies Unit, Faculty of Economics and Administration, University of Malaya.
Abstract The heavy reliance on immigrant labour in manufacturing remains a contentious issue and we address three concerns with respect to their impact are did they displace native workers or complement them? Did their influx impede real wage growth? And did they lower real productivity growth? We found that immigrants complemented local workers in the initial phase when a labour shortage emerged at prevailing wage levels but displaced them in later periods because employers favoured them due to significant non-wage cost savings. Finally, the contention that immigrant labour use contributed to keeping productivity low found some support. In the light of these findings we discuss policy options with respect to immigrant workers.
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