Foreign Workers Case Study

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Lastly, recruitment of foreign workers could possibly be the easiest way to help overcome the shortage of local labor at construction sites . It is well understood that the major cause of manpower shortage is the employers’ reluctance to pay higher wages to the locals, which would consequently increase their expenditure (Abdul Rahim Abdul Hamid, Bachan Singh, Aminah Md Yusof & Nur Ahikin M. Abdullah, 2011) . For this particular reason, the number of local workers keeps lessening each year, resulting in a massive employment of foreign workers instead. The former Minister of Human Resources, Datuk Seri Dr Fong Chan Onn stated that despite Malaysia currently having about 1.8 million foreign workers, there are still hundreds of applications submitted every month by local companies to the Home Affairs Ministry, requesting to hire more foreign workers (Bernama, 2006) . The statement evidently proves that the demand for foreign construction workers is tremendously high, due to the shortage of local workers. Another cause of labor shortage is local preferences. The locals refuse to work at construction sites generally because they prefer easier jobs. This is especially true when they have higher education levels, which enable them to demand for jobs that have good image…show more content…
The supply of this additional labor force fulfilled the urgent demand for labor which could not be met so easily , at a lower rate. Needless to mention, the shortage of skilled construction workers has become a critical problem in the construction industry. Realizing this issue, the President of Master Builder Association of Malaysia (MBAM) notified, “the acute shortage of skilled workers in the construction industry will give negative impact towards the projects under 10th Malaysia Plan and Economic Transformation Program” (as cited in Abdul Rahim et al., 2011, p.

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