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Malaysia’s foreign-worker paradox: employers need staff, but the policy still says locals first

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: 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: 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. Sources

When recruitment reopens but workers remain unpaid: Malaysia’s real welfare test

Malaysia plans to reopen its labour market to Bangladeshi workers. This could create many new job opportunities. But recruitment numbers alone cannot show whether the system is successful. The real test is simple: Are workers paid on time? Are their permits valid? Do they have safe accommodation? Can they get help when an employer breaks the rules? Malaysia Plans a New Recruitment System Bangladesh and Malaysia recently discussed employment opportunities, migration rules and worker welfare. Both countries want a more transparent and accountable recruitment process. Bangladesh announced that worker deployment could restart from the final week of August 2026. BOESL may receive priority during the first phase. Malaysia will also review the list of recruitment agencies submitted by Bangladesh. However, final information about migration costs, approved agencies and application procedures was still pending. Workers should wait for official instructions before paying anyone. The Aerofoam Workers Are Still Waiting The situation of Bangladeshi workers at Aerofoam Manufacturing shows why worker protection is important. Around 109 workers reportedly filed claims over nearly three months of unpaid wages. Many of their work permits had expired or were close to expiry. The workers also reported other problems: These claims should be properly investigated. The workers must also be protected while their legal cases continue. One workers’ representative said: “We are only asking to receive the wages we earned and to be protected while our cases are being resolved.” Expired Permits Create More Danger An unpaid wage is already a serious problem. An expired permit makes the situation worse. Workers may face detention, deportation or loss of legal status. They may also feel pressured to stop their wage claims. Workers should not be punished if an employer fails to renew their permits. Malaysian labour and immigration authorities should protect them while their cases are active. Who Should Take Responsibility? Several parties must work together. Latest News A Malaysian delegation arrived in Dhaka to oversee the processing of around 17,000 workers who missed the May 31, 2024 entry deadline. This backlog process is separate from new recruitment. An approval or visa does not always mean that a worker has a confirmed departure date. Candidates should verify every job through BMET, BOESL or another official channel. The Real Measure of Success Malaysia’s reopening may help many Bangladeshi job seekers. But sending more workers is not enough. A responsible recruitment system must also protect workers after they arrive. Workers should receive their wages, maintain legal status and have access to a fair complaint process. The Aerofoam case is therefore Malaysia’s real welfare test. Sources

From Calling Visa to Departure: Malaysia Recruitment Guide for Bangladeshi Workers

A Malaysian job opportunity should begin with a real employer—not with a broker’s promise. Before paying money or submitting documents, a Bangladeshi candidate should confirm that the employer has approved demand and a valid worker quota. A candidate cannot personally create a vacancy or replace employer authorization.[1] The Recruitment Journey Candidates should treat recruitment as a sequence of independently verifiable steps: What the Malaysia Backlog Teaches Candidates The recent backlog of approximately 15,000–17,000 Bangladeshi workers shows that quota approval, permission to enter Malaysia and actual deployment are separate milestones.[2] Reports concerning recruitment resumption also indicate that deployment may involve employers, approved agencies, BOESL, BMET and Malaysian authorities.[3] Why Document Verification Matters Malaysian authorities reportedly investigated around 1,306 suspected fraudulent temporary employment passes linked to the MyIMMs system. The suspected losses were estimated at RM2.4 million.[4] Candidates should therefore avoid relying on a single online record. Stop the process if any of these warning signs appear: Candidates should prioritize attributable guidance from BMET, BOESL, the Bangladesh High Commission and Malaysian immigration authorities. References [1] Malaysia Calling-Visa Guide — 5 August 2026 — https://www.eyenews.news/english/international/news/3690 [2] Malaysia Worker Backlog — 4–5 August 2026 — https://www.thedailystar.net/news/bangladesh/news/malaysian-team-dhaka-oversee-deployment-15000-workers-4239716 [3] Malaysia Hiring Resumption — 4 August 2026 — https://thefinancialexpress.com.bd/national/bangladesh-aims-to-resume-sending-workers-to-malaysia-in-august [4] MyIMMs Pass-Fraud Investigation — 2 August 2026 — https://newswav.com/article/twelve-remanded-over-alleged-myimms-foreign-worker-pass-fraud-A2608_U64t4h