Last reviewed: August 18, 2026
Malaysia is facing a difficult labour problem. Many employers need workers urgently. At the same time, the government wants local people to receive job opportunities first.
This means Malaysia is not fully opening its labour market. Foreign workers may be hired only when employers cannot find enough suitable local workers.
Malaysia Is Speeding Up Applications
Prime Minister Anwar Ibrahim ordered the Human Resources Ministry to process the first 15,000 foreign-worker applications quickly. The goal is to support sectors facing serious labour shortages.
However, faster processing does not mean automatic approval. Employers must still meet sector rules, quota limits and other requirements.
Malaysia also wants to reduce its dependence on foreign labour. The current limit is 15% of the national workforce. The government aims to reduce this to 10% by 2030.
Restaurants Need More Workers
Indian Muslim restaurant owners have reported serious staff shortages. Some restaurants are operating with only half the workers they need.
One restaurant owner said he needed at least 12 workers but had only six. He also said attracting local workers was difficult because many Malaysians could find better-paying opportunities in Singapore.
The government gave the relevant ministries one month to address the restaurant-sector shortage. Officials also planned to reduce processing delays.
Not Every Shortage Is the Same
Malaysia’s labour shortages affect different industries in different ways.
Sarawak reportedly had vacancies for:
- 1,226 nurses
- 931 medical officers
- 263 specialist doctors
Foreign recruitment may help some sectors. However, doctors and nurses need professional registration, recognised qualifications and licensing. They cannot be recruited through the same process used for restaurant or factory workers.
What the Policy Means
Malaysia’s policy follows a simple order:
- Employers should try to hire local workers first.
- They must prove that a real shortage remains.
- Foreign workers may then be considered.
- Recruitment must follow sector quotas and government rules.
A shortage report is not the same as an approved foreign-worker vacancy. Employers still need official permission before recruiting internationally.
The Real Challenge
Malaysia needs workers, but it also wants to protect jobs for its citizens. The best policy must balance both goals.
Foreign workers can support sectors with genuine shortages. But international recruitment should remain controlled, transparent and based on verified employer demand.
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