Malaysia Aims to Reduce Foreign Worker Dependency to 10% by 2030 Under 13MP – What You Need to Know
Malaysia is undergoing a major labor market transformation. Under the 13th Malaysia Plan (13MP) , the government has announced a bold target: reducing the country’s reliance on foreign workers from 15% to just 10% by 2030 . This policy shift, spearheaded by Prime Minister Datuk Seri Anwar Ibrahim , aims to address long-standing economic challenges while reshaping the workforce landscape. Why Is Malaysia Reducing Foreign Worker Dependency? For years, Malaysia’s labor market has relied heavily on foreign workers, particularly in labor-intensive sectors such as manufacturing, construction, and agriculture. However, this dependence has contributed to low wages, stagnant productivity, and an over-reliance on semi-skilled labor . The government now seeks to rebalance the workforce by prioritizing local hiring, automation, and better job opportunities for Malaysians . A key instrument in this transition is the Multi-Tiered Levy Mechanism (MTLM) , set ...