KUALA LUMPUR (Oct 18): As of the end of August 2024, the number of registered low-skilled foreign workers accounted for 2.5 million persons, nearing the allowable threshold of 15% of total employment, according to the Ministry of Finance in its 2025 Economic Outlook report.

However, the number of low-skilled foreign workers is expected to hover around 2.5 million persons to accommodate the needs of labour-intensive industries.

This represents a significant increase from 1.8 million persons during the same period in 2023, underpinned by the eased initiatives for recruitment and mobility of migrant workers aimed at addressing shortages of workers in the economy and extension of foreign workers legalisation process under the Workforce Recalibration Programme.  

These workers are primarily sourced from Bangladesh (37.8%), followed by Indonesia (23.7%) and Nepal (16.7%). In terms of employment distribution, 31.5% of these foreign workers are in the manufacturing sector, 28.4% in the construction sector, and 18.2% in the services sector.

Going forward, the government will continue to monitor the approval of new hires for low-skilled foreign workers to align with the threshold of 15% of total employment, the report said.  

“Furthermore, the implementation of the multi-tiered levy system as well as the adoption of automation and advanced technology are also anticipated to support policies towards reducing reliance on low-skilled foreign workers,” it added.  

Meanwhile, expatriate hiring is expected to increase marginally to fit the demand of skilled talent in critical jobs.

As outlined in the New Industrial Master Plan 2030 (NIMP 2030), the government will also facilitate the hiring process for skilled talent by introducing a green lane for the highest tier of Employment Pass applications to support growth in strategic industries.

The number of expatriates increased by 6.3% to 113,493 persons as at end-August 2024. The majority of expatriates are from China (24.1%), followed by India (18.3%) and the Philippines (8%), with a significant presence in the information technology (38.7%), services (26.8%), and construction (10.5%) sectors.

Click here to read more about the Economic Report 2024/2025.