GOOD GOVERNANCE AND CHALLENGES OF MANAGING MALAYSIA’S DEPENDENCY ON FOREIGN LABOR

Good governance concept plays an important role in the modern government system through creating sustainable public policies. Good governance is a concept that has been used globally, including in Malaysia. Ironically, Malaysia has the highest number of foreign laborers in Southeast Asian countries reaching approximately six million. The dependency is shockingly becoming a major concern for the government in formulating policy. In formulating policy, it is important to consider various stakeholders such as employers and Malaysian people. Therefore, the government is trying hard to find an equilibrium point in managing and the best way to reduce dependency on foreign labor. This article examined various issues and challenges in managing Malaysia’s foreign labor dependency, including the good governance concept perspective. This study uses a qualitative research approach. There are 7 key stakeholders identified through purposive sampling. Semi-structured interviews were undertaken to identify and understand the issues and challenges faced in the foreign labor governance. The findings found out that Malaysia’s foreign labor governance has overlapping governance arrangement, vague job scope, poor governance management system, and lack of mutual participation. Therefore, it is important to improve the foreign labor governance and policy in Malaysia because shortcomings in governance arrangements hinder the implementation of effective policies. The improvements are crucial to reduce the dependency on foreign labor and Malaysia’s development efforts will progress efficiently.