The overview of trend in manpower supply in Malaysia.

Malaysia has been adding foreign labour into its economy and local labor and the quotas and visas for these workers change over time. If we look back two decades ago, there was a trend of foreigners coming to Malaysia to seek work and earn a better wage. It was an attractive offer because Malaysians’ salaries were much cheaper than those of other countries. However, nowadays the tables have turned as more Malaysian outsourced jobs are being taken by foreigners due to changes in quotas on visa access for work permits.

What is making workforce shortage worse and more common

With the lack of skills and manpower supply in Malaysia, it is betting hard to carry out employees to do duties in all aspects. There will be a tendency of Malaysians reaching the retirement age which might cause negative effects such as overcrowding and increase incidents. The ‘baby boomers’ has reached their early retirement age which also will add-on to the labour shortage issue. It is important for any nation to restructure its policies through actions that can take advantage of current and future workforce compessoration related issues.

Malaysia’s labour market is becoming constricted with available jobs. Report show that there are less jobs that is being made available in Malaysia. This is because of the general ageing population, labour shortage leading to the insufficient workforce, unclear public policy with regards to foreign workers coming to work in Malaysia.

Increasing Demand For Skills

Due to advancement of technology, the demand for higher level of skills are increasing. This results in various levels skillset among Malaysian cannot keep up with demands in labour market and will lead increased unemployment rate with struggling worker who requires lower skill level potentially become unemployed or move into informal sector with hidden risks there or leave Malaysia.

What are the possible solutions for manpower shortage in Malaysia

Malaysia needs to rethink its polices on immigration and how it recruits people for the country. The most optimal way may be to prepare for this abundance of labor disruption by making changes right now, not sticking to outdated labor policies that hinder productivity. Another solution is that the government should work with foreign recruitment agencies to bringing more manpower and workforce to the country. This include taking measures such as allowing more foreign employees to fill up vacancies if that is what is required.

We also need to look at developing technologies like automation and industrial 4.0 with an outlook for the younger generation – who otherwise might not be able to enter these industries due to its rigid nature. Finally, educating local young generations with newer ideologies will interest these populations to take up “new jobs” within the country.