MALAYSIA - MIGRATION IN 1998

Malaysia’s "stop-go" approach to migration was evident in the formulation of migration policies in the ongoing crisis. When the crisis began in 1997, Malaysia was one of the first receiving countries to announce the necessity of repatriating foreign workers. Anticipating the loss of some one million jobs in 1998, the government expected to repatriate the same number of foreign workers to ease domestic unemployment. Foreign workers to be repatriated are those in construction (many projects have been scrapped or shelved) and the services (those working in restaurants, canteens and pasar malam; wholesale markets, launderettes and barber shops; automobile workshops; entertainment outlets; and textile shops). For the latter, the government announced that their permits will not be renewed upon expiry nor will they be allowed to be redeployed. The details and the actual implementation of repatriation would change several times throughout 1998. There were those who questioned or were skeptical whether repatriation would solve domestic unemployment. Then Deputy Prime Minister Anwar Ibrahim pointed out in early 1998 that there had been no massive retrenchments in Malaysia and the country still had unemployment. Indeed, amidst fears of an increasing unemployment, the plantation and manufacturing sectors were in need of more workers, hence the redeployment policy. In February, reports indicated a labor shortage of 60,000 (this was reduced later to 38,000) and 30,000 in agriculture and manufacturing, respectively. Unemployed locals did not seek out jobs in these sectors, and few among displaced migrant workers transferred to these sectors. On 15 July, a month before the expiration of work permits, the government reversed its stand on repatriation. Foreign workers who were allowed to stay were given an extension of six years. Those ineligible, about 200,000, had to be repatriated (those working as caddies and in markets or shops, supermarkets, medical centers or private clinics, beauty salons, karaoke lounges, courier services or as distributors of electrical goods or furniture). In addition, the Cabinet Committee on Foreign Workers decided to hire 100,000 (another report mentioned 96,000) workers for the plantation and manufacturing sectors. Later in the year, the government announced that it would need 220,000 workers in 1999, and the highest priority would be given to Indonesian workers. Furthermore, the government offered an amnesty program (which ran from 31 August to 31 October, and later extended to 15 November) for migrant workers who cannot stay in Malaysia. Under the program, irregular migrants would be exempt from paying fines, and after making arrangements with their respective embassies, they could leave from any exit point. Data on the extent of repatriation are rather sketchy. Deputy Home Minister Datuk Tajol Rosli said Malaysia has repatriated 160,000 Indonesians since the crisis started in July 1997. Also among the larger groups of repatriated migrants (as of October 1998) are Bangladeshis, 4,986; Filipinos, 2,059; Indians, 1,730; Myanmars, 575; Pakistanis, 564; Nepalese, 204; and Chinese, 152. Officials estimate that there would still be some 100,000 irregular migrants left after the amnesty period. They and their employers will have to face up to stiff penalties imposed for violators.

The government may be shifty concerning documented workers, but not against the estimated one million irregular workers and those attempting to enter Malaysia illegally. Increased border controls and surveillance, particularly in known entry points to the country, were carried out since the crisis. In the first quarter of 1998, some 15,000 irregular migrants had been deported and thousands were cramped in several detention centers (which could only accommodate 12,500). Other measures taken were: reducing the deportation process from three months to 14 days, a nationwide operation to check all red identity cards or ICs (issued to immigrants), detention without trial for holders of forged ICs and those involved in processing and issuing them, and mandatory whipping or caning. Penalties for immigration offenses were imposed not only on irregular migrants but also on agents, taikongs (middlemen; also ferry operators), employers, and those involved in harboring and abetting in transporting irregular migrants. All these are costly. Patrolling the 1,700-kilometer coastline, for example, requires a budget of RM40 million to maintain a fleet of 600 vessels of various types. The government spends about RM3 million a month to house and feed inmates in the detention centers. Then there is the matter of transportation costs. Malaysia had problems in repatriating irregular migrants from South Asia because of expensive airfares. Deputy Home Minister Datuk Ong Ka Ting admitted that although conducting operations against irregular migrants is insufficient, the government will emphasize this course of action.

A new requirement was imposed on migrant workers in 1998. In order to reduce foreign exchange outflow, foreign workers (except domestic helpers) will be required to contribute 11 percent of their income to the Employees Provident Fund. Employers consider this requirement an additional burden (they will have to contribute 12 percent of the worker’s monthly salary). Indonesian migrants, in particular, were warned against participating in political rallies sparked by the arrest of Deputy Prime Minister Anwar Ibrahim (allegedly many foreign workers participated in the rallies). On the other hand, because of the crisis, the Home Ministry announced that effective January 1999, the annual foreign workers’ levy would be reduced from RM1,500 to RM1,200. The levy would be lower, RM960, in Sabah, Sarawak and Labuan due to lower industrial development, labor shortages and lower salaries in these states. Annual levies for domestic helpers and plantation workers remain at RM360.

Other migration-related developments noted in the past year were: the return of Malaysians studying abroad (about 50,000 Malaysians are studying overseas, of whom 35,000 are privately sponsored) due to the higher cost of overseas education, the institution of a simpler and faster process in applying for citizenship, relaxing of visa applications to boost tourism and promote business, and the Malaysia-Singapore row over the transfer of Malaysia’s Customs, Immigration and Quarantine (CIQ) from Tanjung Pagar to Woodlands. The experience of Indonesian Chinese had Chinese Malaysians thinking about the importance of forging political stability and racial harmony. One of the projects of the Chinese community in Malaysia is to document the history of the Chinese so as to enrich the nation’s history and to strengthen the bonds of unity. Malaysian educational institutions enjoyed an unexpected boost owing to the crisis, with many Asian students choosing to study in Malaysia instead of the Americas or Europe. There has been a notable increase in the number of Indonesians and Thais enrolling in Malaysian schools and institutions. With this development, Malaysia is eyeing to become a center of education in the region in the near future.