The Ministry of Economy has reaffirmed the government’s commitment to economic and labour market reforms, stating that these measures will fortify Malaysia’s economic foundations while fostering a dynamic, inclusive, and competitive workforce.
In a statement published on the official Parliament website, the ministry emphasised that these reforms aim to ensure sustainable economic growth, drive higher incomes, enhance business competitiveness, and create high-quality employment opportunities.
“As part of these efforts, the government will implement the multi-tier levy mechanism (MTLM) this year to reduce dependence on foreign workers,” the statement said. “Funds collected from the levy will be reinvested in industries to promote automation and mechanisation, thereby increasing productivity.”
The ministry was responding to a query from Tanjung Piai MP Datuk Seri Wee Jeck Seng on strategies to address Malaysia’s reliance on foreign labour.
Additionally, the government is drafting the 13th Malaysia Plan (2026-2030), which includes policies to further reduce foreign worker dependency. One proposal under review is lowering the current 15% limit on foreign worker employment as a proportion of the total workforce.
The government is also assessing the maximum employment duration for foreign workers while promoting greater investment in automation and mechanisation to create a more self-sustaining labour market.
According to the 2023 Labour Force Survey by the Department of Statistics Malaysia, non-citizens make up two million, or 12.7%, of the country’s workforce.
Source: https://www.businesstoday.com.my/2025/03/07/economic-and-labour-market-reforms-to-strengthen-malaysias-growth-says-ministry/