Nabil Luqman

0f9d2dd4f71434084e2b6094de1865e23abb37bb9f28ca51feeabee679ec9be2

Social

business

shortage

employment

refugees

Steven Sim

solution

Rohingya

labour

If there is one issue that continues to divide opinion in Malaysia, it is the country&rsquo;s labour market &ndash; particularly when it comes to so-called 3D jobs, referring to work that is dirty, dangerous and difficult.
From construction sites and plantations to restaurants and manufacturing plants, these sectors have long depended on foreign workers to keep operations running. Many employers argue that despite repeated recruitment drives, few Malaysians are willing to take up these physically demanding roles.
The shortage has become increasingly apparent in recent years, with businesses warning that a lack of manpower is affecting productivity and growth. In the food and beverage industry alone, the Muslim Restaurant Owners Association of Malaysia (Presma) estimates that around 25,000 positions remain unfilled.
Against this backdrop, Entrepreneur and Cooperatives Development Minister Steven Sim has proposed a different approach &ndash; one that focuses not on bringing in more foreign workers, but on making use of refugees who are already living in Malaysia.
Steven Sim: &lsquo;Why Not Use Those Already Here?&rsquo;
&nbsp;<img src="https://r2.myc.my/b4f97ac64c4d0a7cc928745fd39acea0cb0b6d98aa9d8fe469bfc89545523ff1" />
Speaking during a visit to Chowrasta Market in Penang, Sim suggested that the government should reconsider allowing eligible refugees to legally participate in the labour market under carefully regulated conditions.
He pointed out that many refugee communities have been living in Malaysia for years, and rather than continuing to recruit workers from overseas, the government could study mechanisms that enable refugees to fill labour shortages in industries struggling to attract local workers.
&ldquo;Some 3D industries are indeed facing manpower shortages. Instead of continuously bringing in foreign workers from overseas, why not consider making use of the refugee groups who are already in the country and allow them to enter the labour market?&rdquo; he said.
<img src="https://r2.myc.my/c97105844bbaa9f28257f103f6331add44b7e2157d331ed8aa44c4751f77cd5c" />
According to Sim, providing legal employment opportunities could improve refugees&rsquo; livelihoods while also reducing social issues arising from their inability to work formally.
Without access to legitimate jobs, many refugees turn to informal businesses or small-scale trading to survive, which can sometimes create friction with local traders competing in the same space.
The proposal has reportedly already been raised at Cabinet level, with the Home Ministry instructed to study the matter further.
A Long-Standing Rohingya Challenge
&nbsp;<img src="https://r2.myc.my/9e98497cca08c7c57d1291a7ec1007c877aced90f20f76fbca741df4e08a906d" />
Sim also acknowledged that the Rohingya issue is not a recent development but one that has accumulated over many years.
Communities across Malaysia have raised concerns about refugee settlements, housing conditions and local management issues, with similar complaints emerging in multiple states rather than being confined to a single area.
Recent attention on the deteriorating apartment building in Hulu Langat allegedly occupied by Rohingya residents has once again highlighted the complexity of the situation. Authorities have since confirmed plans to demolish the structure, but the case has reignited wider discussions about refugee management and long-term policy.
Sim believes some of today&rsquo;s challenges stem from weaknesses in previous border control and immigration monitoring systems. However, he stressed that the current government has strengthened enforcement efforts and will continue improving border management to prevent illegal entry while developing better policies for refugees already in the country.
Businesses See Refugees as a Potential Solution
<img src="https://r2.myc.my/865ad5dfd63d2d43df1c08cebf9f80a0cddbd9fa1e146b05c34ff2a7aa300eef" />
Malaysia&rsquo;s restaurant industry has also floated a similar proposal.
Faced with severe staff shortages and limited success recruiting local workers through official Labour Department channels, Presma has repeatedly suggested allowing Rohingya refugees to work legally.
The organisation argues that many refugees are already residing in Malaysia and could help fill vacancies that employers have struggled to staff for years.
However, current laws do not grant Rohingya refugees the legal right to work, leaving employers unable to hire them despite ongoing manpower shortages.
While Steven Sim acknowledged the proposal, he noted that any decision must comply with existing laws and government policies, without indicating whether legislative changes are being considered.
Could Legal Employment Reduce Social Issues?
Supporters of the proposal argue that formal employment could provide benefits beyond simply filling labour shortages.
Giving refugees legal access to work would allow them to earn stable incomes, reduce dependence on informal economic activities and potentially ease tensions with local communities.
It could also improve oversight, as workers would be registered, taxed where applicable and subject to labour regulations rather than operating outside the formal economy.
For employers, the move could provide an immediate pool of workers without relying entirely on new foreign labour recruitment, particularly as restrictions on bringing in overseas workers have tightened in recent years.
But Challenges Remain
<img src="https://r2.myc.my/fc9b9b87311f0be3efd213eaadaeddc883a0eeab1a013eff775200ddf8c7ed0b" />
Despite its potential advantages, the proposal raises significant legal and policy questions.
Malaysia does not have a comprehensive refugee management framework and is not a signatory to the 1951 Refugee Convention. Instead, refugees rely largely on documentation issued by the United Nations High Commissioner for Refugees (UNHCR), creating limitations in verification and enforcement.
Legal experts have warned that simply allowing refugees to work without broader reforms could create additional complications.
A clear policy framework would be needed to determine eligibility, regulate employment sectors, prevent abuse by employers and ensure proper identity verification. Coordination between government agencies, employers and international organisations would also be essential.
Critics argue that without these safeguards, the system could be vulnerable to exploitation or encourage further irregular migration.
Could the Recommendation Actually Work?
The idea of allowing eligible refugees to work is neither entirely new nor straightforward.
On one hand, Malaysia continues to face chronic labour shortages in sectors that many locals are reluctant to join, while thousands of refugees already reside in the country without legal employment opportunities. Matching these two realities could provide practical economic benefits for both businesses and refugees.
On the other hand, the success of such a policy would depend heavily on strict regulation, transparent enforcement and comprehensive immigration reforms.
Without a robust framework, legal employment alone is unlikely to resolve the broader issues surrounding refugee management, border security and social integration.
Ultimately, Steven Sim&rsquo;s proposal has reopened an important conversation: rather than viewing refugees solely as a humanitarian challenge, should Malaysia also see them as a potential workforce capable of addressing labour shortages?
Whether the government moves forward with the idea remains uncertain, but the discussion reflects the growing need for long-term solutions that balance economic realities, public concerns and humanitarian responsibilities.
&nbsp;
*Sources: Visual and Reference Credits to Social Media &amp; various cross-references for context.
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Could allowing refugees to work legally help solve Malaysia’s labour shortage and improve their livelihoods? 

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Could Hiring Refugees Already In Malaysia Help Solve Labour Shortages? Steven Sim Thinks So

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Could Hiring Refugees Already In Malaysia Help Solve Labour Shortages? Steven Sim Thinks So

Could allowing refugees to work legally help solve Malaysia’s labour shortage and improve their livelihoods?

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