Reasons for hiring foreign workers by the company

Have you ever heard complaints or criticism regarding using foreign workers? This topic has been going on for debate for almost few decades years. Despite the widespread opposition to hiring foreign labour among Malaysians, many Malaysians still preferred to hire the foreign workforce. Businesses continue to employ foreigner.

Now, let’s examine the factors that influence local employers’ decision to choose international employees over local ones.

1. Reduce labour costs

Payroll costs are one of the costs that employers would pay attention to in a developing country because most of the factories still significantly rely on labour / manpower. In this scenario, an employer will make every effort to keep labour costs as low as possible; Some night ask this “will this impact the effectiveness of production?”, well the answer is “No” . Contrarily, employing foreign workers will in fact contributes to improving production efficiency.  This brings up the second justification for why local businesses favour hiring foreign workers.

2. Ramp up production effectiveness

Most foreign employees in Malaysia send between 30 and 55 percent of their pay back to their home countries, so they don’t mind putting in extra hours. They get paid more the harder they work. As a result, employers’ benefit from this circumstance. Since foreign workers are eager to put in more time, it speeds up production for their company. As a result, some competitive employers will seize this opportunity to enhance their sales.

3. Locals are reluctant to take on 3D work

As Malaysians, we can honestly say that during the epidemic, the majority of international employees returned to their home countries because they were unable to enter Malaysia thanks to the Covid-19 issues. As a result, the majority of 3D projects in all industries share the same problem: A LACK OF LABOUR / MANPOWER.

No matter how high the jobless rate was at the time, some locals preferred to be jobless than reject to work 3D jobs. For your knowledge, 3D occupations are challenging, risky, and nasty employment. Even in cases where local firms raise wages by 20–30%, there are still no body seems willing to works in these jobs. Therefore, hiring foreign workers is becoming the only solution and it is so popular among local firms.


Despite the many benefits of hiring foreign workers, it is still difficult to do so because of the government’s stringent requirements for the application procedure. The procedure is challenging, and if you unintentionally step outside the bounds, you risk being banned. Try to learn and comprehend all the rules before applying or asking a for assistance.

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