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HomeMalaysia NewsDecades-Old Choices Haunt Malaysia as Foreign Influx Sparks Economic Concerns

Decades-Old Choices Haunt Malaysia as Foreign Influx Sparks Economic Concerns

In a recent post on X (formerly Twitter), Malaysia’s Economy Minister, Rafizi Ramli, delves into the repercussions of decisions made years ago, shedding light on the current surge of foreigners dominating certain areas. He attributes this phenomenon to the nation’s historical reliance on foreign labor to fill gaps in specific industries. With a focus on labor market reforms, the government aims to curb illegal foreign-operated businesses through the proposed Anti-Ali Baba law, aligning it with broader economic strategies outlined in the upcoming Malaysia Plan.

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Decades ago, Malaysia faced labor shortages in specific industries, leading to a reliance on foreign workers to fill the gaps. Economy Minister Rafizi Ramli highlights the origins of the current situation, attributing it to the historical dependence on foreign manpower.

 Foreign Worker Dependence:

Rafizi points out that the reliance on foreign workers was a consequence of Malaysians’ declining interest in certain industries. Employers cited a lack of local interest and mentioned that salary concerns played a role.

Ali Baba Method:

As a consequence of the influx of foreign workers, a phenomenon known as the “Ali Baba method” emerged. Malaysians were reported to be renting out their licenses to foreign workers, enabling them to start businesses. This practice further exacerbated the impact of foreign labor on the economy.

 Economic Implications:

The minister underscores the economic ramifications of the situation, emphasizing that the current challenges are a direct result of decisions made decades ago. Issues such as businesses operating under the Ali Baba method have surfaced, prompting concerns about the overall economic landscape

Proposed Anti-Ali Baba Law: To address the issue of foreign workers operating businesses illegally, the Economy Ministry is introducing the Anti-Ali Baba law. This legislation aims to prevent the exploitation of licenses by foreigners and aligns with broader labor market reforms. The proposed law is part of the government’s strategy to regulate and manage the economic impact of foreign workers.

Integration with Malaysia Plan:

Rafizi highlights the synergy between the Anti-Ali Baba law and the ongoing labor market reforms, emphasizing their role in the finalization of the upcoming Malaysia Plan (MP). This integration suggests a comprehensive approach to address not only immediate concerns but also to shape the future economic landscape of Malaysia.