IMPACTS IN RESTRICTING THE EMPLOYMENT of FOREIGN LABOURS IN MALAYSIAN CONSTRUCTION INDUSTRY

Abstract

The Malaysian construction industry is greatly depending on the foreign labours to carry out works due to shortage of the local labours. This has increased the amount of foreign labours in Malaysian construction industry and also has affected the social problems in the country. In February 2016, the government has come to an agreement to restrict the employment of the foreign labours in order to lessen the reliant of the foreign labours. Therefore, this research was conducted to study the impacts of restricting the employment of foreign labours in Malaysian construction industry and also to propose the strategies for contractors to overcome the restriction of the foreign labours. A quantitative method was employed in this research by obtaining the data from questionnaire survey to 44 numbers of G7 contractors in Selangor. The data were analysed using statistic method and mean index analysis. The results indicate numerous impacts due to the restriction of foreign labours. Amongst the impacts are the increase of labour cost such as raising the wages, bonus and incentives to attract the local labours to work in the construction industry and increase the employment of illegal and local labours at construction site. However, there are strategies to overcome the restriction of foreign labours which are fully optimize the used of available labour, provide training to the unskilled labours and apply technologies, plant and machineries to substitute the labours. This study will be beneficial to contractors in order to manage the human resources in the construction industry.